What occurs when a party is subject to civil liability?

When a party is subject to civil liability, it means that they are legally responsible for the harm or damage they have caused to another party. In such cases, the primary consequence is that the liable party is required to compensate the injured party, typically through monetary damages. This compensation is meant to address the losses sustained by the victim as a result of the liable party's actions or negligence.

Civil liability usually arises in situations such as contract disputes, personal injury claims, and property damage cases, among others. The aim here is not punitive, unlike in criminal cases, but rather to restore the injured party to the position they were in before the harm occurred, as much as money can do so. Therefore, compensation can cover tangible losses, such as medical expenses, lost wages, and property repair costs, as well as non-tangible losses like pain and suffering.

Other options suggest outcomes that do not align with the nature of civil liability. Serving time in prison pertains to criminal liability, punitive damages may occur in specific circumstances but are not a standard requirement for civil liability, and being exempt from financial responsibilities directly contradicts the concept of being liable.