CPRE Risk Management and Legal Compliance 1 — Questions and Answers
Question 1: Which risk management technique involves transferring financial risk to a third party through insurance or contract provisions?
- Risk avoidance
- Risk retention
- Risk transfer (Correct answer)
- Risk reduction
Correct answer: Risk transfer
Risk transfer shifts the financial consequences of a loss to another party, typically through insurance policies or contractual indemnification clauses.
Question 2: A park agency requiring all program participants to sign a waiver is attempting to:
- Guarantee no lawsuits will ever be filed
- Transfer assumption of inherent risk to the participant and document informed consent (Correct answer)
- Eliminate the need for safety inspections
- Satisfy ADA accessibility requirements
Correct answer: Transfer assumption of inherent risk to the participant and document informed consent
Waivers and assumption-of-risk documents inform participants of inherent risks and, where enforceable, transfer liability for those risks to the participant.
Question 3: The standard of care in negligence cases for park agencies is typically defined as:
- What the agency's legal counsel recommends
- What a reasonably prudent park professional would do under similar circumstances (Correct answer)
- The minimum standard set by OSHA
- What the highest-funded park agency in the state does
Correct answer: What a reasonably prudent park professional would do under similar circumstances
Negligence is determined by whether the defendant acted as a reasonably prudent professional would have under similar circumstances.
Question 4: In a slip-and-fall case against a park agency, contributory negligence refers to:
- The agency's failure to warn of hazards
- The visitor's own actions that contributed to causing their injury (Correct answer)
- A contractor's role in the accident
- Defective equipment manufactured by a vendor
Correct answer: The visitor's own actions that contributed to causing their injury
Contributory or comparative negligence assigns partial fault to the injured party for their own role in causing the incident.
Question 5: Which federal law prohibits employment discrimination based on race, color, religion, sex, and national origin?
- Americans with Disabilities Act
- Age Discrimination in Employment Act
- Title VII of the Civil Rights Act of 1964 (Correct answer)
- Family and Medical Leave Act
Correct answer: Title VII of the Civil Rights Act of 1964
Title VII of the Civil Rights Act of 1964 prohibits employment discrimination based on race, color, religion, sex, or national origin.
Question 6: The Virginia Graeme Baker Pool and Spa Safety Act primarily addresses:
- Water chemistry standards
- Entrapment hazards from pool and spa drain covers (Correct answer)
- Lifeguard certification requirements
- Pool fence height requirements
Correct answer: Entrapment hazards from pool and spa drain covers
The VGB Act requires anti-entrapment drain covers and systems in public pools and spas to prevent suction entrapment injuries and deaths.
CPRE Risk Management and Legal Compliance 1
Which risk management technique involves transferring financial risk to a third party through insurance or contract provisions?