Gamma Ltd Owns a Widget

question 6

Multiple Choice

Gamma Ltd owns a widget. It purchased property insurance from Atlantic Insurance Co. The widget was recently destroyed by a fire. It was worth $75 000, and it will cost that much to replace it. Both parties agree that that loss falls within the terms of the policy. Nevertheless, a dispute has arisen regarding a $5000 deductible. That most likely means that

• A) the benefit that Gamma Ltd is entitled to receive under the policy will be reduced to the extent that the widget can be sold for scrap material.
• B) Gamma Ltd failed to pay a premium worth $5000.
• C) if Atlantic Insurance Co sues a third party in tort for causing the fire that destroyed the widget, the costs of that litigation will be deducted from the benefit that Gamma Ltd is entitled to receive.
• D) Atlantic Insurance Co claims that the fire was caused by a third party, and that Gamma Ltd must sue that third party in tort instead of claiming a benefit under the policy.
• E) Atlantic Insurance Co claims that Gamma Ltd is entitled to receive $70 000.

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Definitions:

(E)-2-pentene

An alkene with the formula CH3CH=CHCH2CH3 where the two substituents on the double bond are on opposite sides, denoted by the (E) configuration.

(Z)-2-pentene

An alkene with the chemical formula C5H10, where the double bond between carbons 2 and 3 has the highest priority substituents on the same side, following the Cahn-Ingold-Prelog priority rules.

Stereoisomers

Compounds sharing identical molecular formulas and sequences of bonded atoms, yet varying in the spatial arrangement of their atoms.

Mirror Image

Refers to the non-superimposable reflection of a molecule or object, analogous to its appearance in a mirror, often used in stereochemistry to describe chiral compounds.