How might legal actions result from non-compliance?

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Legal actions resulting from non-compliance can lead to fines and other penalties because when an organization fails to adhere to laws, regulations, or industry standards, it exposes itself to legal liabilities. Regulatory bodies and courts have the authority to impose financial penalties as a deterrent to discourage future non-compliance and to reinforce the importance of adhering to established rules. This serves to protect consumers and the integrity of the marketplace. Furthermore, the possibility of legal action can result in significant costs beyond just fines, including legal fees and damage to reputation, which emphasizes the importance of maintaining compliance within an organization. This contrasts sharply with the other choices, which do not acknowledge the risk of legal consequences associated with non-compliance.

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