CIC Commercial Property Practice Exam 2025 – All-in-One Guide to Master Your Certification Success!

The term that describes the financial implications of 'comparative negligence' is accurately identified as the one that allocates fault and reduces compensation. In jurisdictions where comparative negligence is applied, when an injured party is found to be partially at fault for their own injuries, the total amount of any damages awarded will be reduced in proportion to their level of fault.

For example, if a plaintiff is awarded $100,000 but found to be 20% at fault for the incident, their compensation will be reduced to $80,000. This principle aims to ensure that damages are distributed fairly based on the level of responsibility each party holds for the incident. In effect, it recognizes that both parties may share some degree of fault and adjusts the financial outcome accordingly to reflect that shared responsibility.

This contrasts with other options, such as those implying elimination of liability concerns or requiring insurance to cover all damages, which do not accurately capture the essence of how comparative negligence operates in determining financial responsibility.