Due diligence includes the continual activities that you do to make sure the protection mechanisms are
continually maintained and operational.
The prudent man rule states that a person is not liable for damages if the person performs duties that
prudent people would exercise in similar circumstances.
The downstream liabilities standard states that when companies come together to work in an integrated
manner, special care must be taken to ensure that each party promises to provide the necessary level of
protection, liability, and responsibility needed, which should be clearly defined in the contract that each
party signs.
The legally recognized obligation standard states that there is a standard of conduct expected of the
company to protect others from unreasonable risks. If the company fails to conform to this standard,
injury or damage could result. Proximate causation means that someone can prove that the damage that
was caused was the companys fault.