Problem 11–2B Deborah Landers provides skating lessons for children ages 8 through 15. Most students are beginners. Landers rents ice time from the local arena. Because this is a new business venture, Landers wants to save money and does not want to purchase insurance. She seeks your advice about her business exposure to liabilities.

Required Write a memorandum to inform Landers of specific contingent liabilities that could arise from the business. It will be necessary to define a contingent liability because she is a professional skater, not a businessperson. Propose a way for Landers to limit her exposure to these possible liabilities.