DEFINITION of 'Statutory Liability'

A legal term meaning that someone can be held responsible for a certain action or omission because of a related law that is not open to interpretation. This is a generic term that can apply to any field, not just finance, but in finance it may come up in reference to real estate transactions, stockholder obligations or the behavior of board members, to name just a few examples.

BREAKING DOWN 'Statutory Liability'

In New Zealand and Australia, businesses commonly purchase statutory-liability insurance to protect themselves from the fines, penalties and legal fees that can result from an accidental breach of law. These may include occupational health and safety laws, environmental laws and employment laws.

RELATED TERMS
  1. Financial Responsibility Law

    A law which requires an individual to prove that he or she is ...
  2. Natural Law

    A set of rules inherent in human behavior and human reasoning ...
  3. Common Law

    In the United States, a body of unwritten laws based on precedents ...
  4. Obligation

    The responsibility to meet the terms of a contract. If an obligation ...
  5. Interpretive Letter

    A letter issued by banking regulators that interprets the banking ...
  6. Valued Policy Law - VPL

    A statute that requires insurance companies to pay the full value ...
Related Articles
  1. Investing

    Law Of Diminishing Marginal Utility

    Learn about this law of economics related to consumption.
  2. Investing

    The 5 Best Real Estate Lawyers in Chicago

    Read about some of Chicago's top lawyers working in real estate law, and find out what types of clients they serve and what services they offer.
  3. Personal Finance

    Career Advice: Accounting Vs. Law

    Identify the key differences between working in accounting and working in law. Understand which specific skills make you better-suited for each career.
  4. Personal Finance

    Career Advice: Investment Banking Vs. Law

    Learn some of the most important differences between a career in investment banking and law, and figure out which career suits you better.
  5. Trading

    5 Generic Products That Are Just As Good

    While some generic products are second-rate, others are just as good as the real thing. Here are six generics that take the cake.
  6. Investing

    5 Free Or Low-Cost Legal Services

    Legal fees have never been more expensive. Here are some ways for you to save on legal fees while still getting reliable advice.
  7. Investing

    The 5 Best Real Estate Lawyers in Miami

    Read about some of Miami's top real estate law firms, and learn more about what kinds of clients they serve and what legal services they provide.
  8. Investing

    10 Habits of Highly Effective Real Estate Investors

    The best real estate investors all share these traits and practices.
  9. Insurance

    Behind the Law of Large Numbers in the Insurance Industry

    Discover how the law of large numbers helps insurance companies cope with risk, and why the theory does not always live up to reality.
  10. Investing

    What Does Finance Cover?

    Finance is the study of banking, leverage, credit, capital markets, money and investments, along with how they are used by individuals and companies.
RELATED FAQS
  1. Is a person registered for Financial Instruments Business eligible to conduct both ...

    Explore Japan's 2006 Financial Instruments and Exchange Law, and understand how the law affects investment services regulation. Read Answer >>
  2. What does the law say about non-U.S. citizens buying stocks of U.S. companies? Are ...

    The law is very fuzzy on the matter of who may own U.S. securities and for what purpose. The U.S. follows the common law ... Read Answer >>
  3. Does the law of demand in economics describe real human behavior?

    Learn how the law of demand can be used to describe human nature, even if it cannot always produce accurate predictions about ... Read Answer >>
  4. John King, a CFA, resides in Jurisdiction A, where the securities laws and regulations ...

    The correct answer is d. Since the Law of Locality applies, and King performs his business in Jurisdiction B (where securities ... Read Answer >>
  5. Does stockholders equity accurately reflect a company's worth?

    Learn whether stockholders' equity accurately reflects a company's worth. Stockholders' equity is found by taking the difference ... Read Answer >>
  6. What is the difference between legal liability and public liability?

    Discover the differences between a general legal liability, a specific public liability and a professional indemnity in the ... Read Answer >>
Hot Definitions
  1. Market Capitalization

    The total dollar market value of all of a company's outstanding shares. Market capitalization is calculated by multiplying ...
  2. Frexit

    Frexit – short for "French exit" – is a French spinoff of the term Brexit, which emerged when the United Kingdom voted to ...
  3. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  4. Down Round

    A round of financing where investors purchase stock from a company at a lower valuation than the valuation placed upon the ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Portfolio Investment

    A holding of an asset in a portfolio. A portfolio investment is made with the expectation of earning a return on it. This ...
Trading Center