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A statute of limitations establishes a specific time frame in which a legal claim must be filed following an incident, such as a case involving negligence. If a plaintiff does not initiate their claim within this designated period, the statute of limitations effectively prohibits them from pursuing legal action related to that claim. Consequently, this can lead to the dismissal of cases that are filed after the deadline, as the law would not permit consideration of cases that violate this time constraint. This reinforces the legal principle that timely filing is crucial for the enforcement of rights and responsibilities in negligence cases.

The other options do not accurately reflect the nature of statutes of limitations. Extending the time to file a claim would contradict the purpose of a statute of limitations, which is to impose a restriction. Stating that it is irrelevant in civil cases is inaccurate, as statutes of limitations are a fundamental legal principle that applies to civil matters, including negligence. Lastly, a statute of limitations does not guarantee financial compensation; it merely sets the boundaries within which a party must act to seek compensation through legal means.