In Establishing Negligence, Even If the Defendant Owes the Plaintiff

question 9

Multiple Choice

In establishing negligence, even if the defendant owes the plaintiff a duty of care and has breached it, the defendant will not be liable unless the damage suffered by the plaintiff:

• A)Was caused by the defendant's breach.
• B)Was too remote or far-fetched.
• C)Was voluntarily assumed by the defendant.
• D)Was pure economic loss.

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Definitions:

Cost of Equity

The return a firm theoretically pays to its equity investors, i.e., shareholders, to compensate them for the risk they undertake by investing their capital.

Financial Restructuring

The process of reorganizing a company's financial structure, typically in response to financial distress, to improve liquidity and stabilize the business.

Reorganization

The process of restructuring a company's business or financial arrangements, often in bankruptcy.

Distressed Firm

A company experiencing financial hardships, often reflected in its inability to meet financial obligations.