A contract law case arises from a breach of a private agreement, while a tort law case arises from:
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Tort law addresses civil wrongs, such as negligence, defamation, and trespass, in which one party's conduct injures another outside the context of any contract. Contract law, by contrast, enforces the promises the parties have voluntarily made to each other. An insurance policy is a contract, so a dispute over policy benefits or premiums is typically a contract matter, while an injury caused by another's careless conduct is a tort matter. Criminal violations are prosecuted by the state rather than pursued as private civil wrongs, and administrative regulation is a regulatory matter rather than a tort.
Why the other options are wrong
- C) Criminal violations are prosecuted by the state and are distinct from civil torts, although some conduct can give rise to both criminal charges and civil tort claims. This option reflects a different rule and does not match the law that governs the transaction.
- D) A premium dispute arises from the insurance contract itself, so it is a contract law matter rather than a tort claim. Accordingly, this plausible-sounding answer is one that examiners expect candidates to eliminate.
- A) Administrative regulation of a business is a regulatory matter involving an agency, not a tort claim between private parties. This statement does not survive the statutory analysis presented above and is therefore wrong.
Memory hook
Contract = broken promise. Tort = broken conduct. Insurance fights are contracts; careless harms are torts.