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What Is the Legal Definition of Liability?

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According to Cornell Law Schools website, the legal definition of liability is, "A legally enforceable claim on the assets of a business or property of an individual. In business, liability results from a breach of duty or obligation by act or failure to act. Liability also refers to the debt or obligation of a business in contrast to its assets."

Rebecca Rose Woodland, litigator and legal analyst joined TheStreet's Katherine Ross to discuss the legal definition of liability.

Back in March, Woodland sat down in-studio, right before the virus shut down New York City, to discuss the legal ramifications of the coronavirus pandemic

Back in March, Woodland said, "So, if we want to talk about employer-employee relationships and what sort of situations the employers could find, and the employees, we have two really different sectors. The employers in a service industry have to worry about a number of things. An employee getting sick, that employee possibly infecting other people. Also, that employee affecting or infecting guests of the establishment. So, service industries, you have hotels, hospitality, restaurants, lounges, different things like that. So, there are so many thoughts about this right now. Most of those employees are at-will employees, so they don't have necessarily ... they're not obligated to have legally paid sick leave."

"So, what we're looking at here is if they're an at-will employee, don't have paid sick leave, well where does that leave the employee? How long can they stay out? You don't want them returned to work sick," she continued. "

So, how does that apply now that we've been through a shutdown and millions of Americans are out of a job?

Well, Senate Republicans are mulling over proposing legal protections for universities, schools, and businesses across the country to help them reopen without the threat of a COVID-19-related lawsuit.

Woodland breaks down what liability means for businesses in the video above. 

You can follow Katherine Ross on Twitter at @byKatherineRoss.

Read more from Katherine Ross here.

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