Question

A restaurant owner leased a meeting room at the restaurant to a second party. The lease specified that the second party, not the restaurant owner, would be responsible for any liability arising out of the use of the meeting room, and that the restaurant owner would be "held harmless" for any damages. The restaurant owner's use of the hold-harmless agreement in the lease is an example of:___________.a. Warning labels on packaging for medications. b. A firm installs sprinkler systems. c. Exercising to maintain your health. d. Storing backup copies of records in the cloud.

Answer 1

Answer:

A.Warning labels on packaging for medications

Explanation:

According to the question, the restaurant owner shifted the risk or liability  to the second party, and this is similar to the answer chosen where the drug manufacturer prints warning labels on the medication in case if the drug is misused or abused in any form they would not be held accountable.

This process is known as Non-insurance Transfer

A non-insurance transfer also known as contractual risk transfer, is the transfer of risk from one person or entity to another by way of something other than a policy of insurance. Most commonly, the techniques used involve hold harmless, indemnity, and insurance provisions in contracts.