A Defendant Who Is Only Slightly Liable May Be Required

question 30

Multiple Choice

A defendant who is only slightly liable may be required to pay the full amount of damages under which of the following?

• A)the joint and several liability rule
• B)the collateral source rule
• C)arbitration
• D)res ipsa loquitor

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Definitions:

Compounded Annually

A method of calculating interest where the interest earned each year is added to the principal, and the interest for the next year is calculated on the total amount.

Unamortized Discount

The portion of a bond discount that has not yet been charged to expense because the bond has not reached its maturity.

Times Interest Earned Ratio

A financial ratio that measures a company's ability to meet its debt obligations by comparing its income before interest and taxes (EBIT) to its interest expenses.

Callable Bonds

A type of financial instrument that allows the issuer to buy them back prior to the expiration date, for a pre-determined price.