What Question Do the Courts Ask in Deciding the Standard

question 4

Multiple Choice

What question do the courts ask in deciding the standard of care to apply?

• A)What would an average person in society have done?
• B)Was it reasonable to foresee the damage that would occur if the act was done?
• C)What would a reasonable person have done under similar circumstances?
• D)What would an extremely cautious person have done under the circumstances?
• E)What would I, the judge or jury, have done in the circumstances?

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Definitions:

Income Statement

A financial statement that reports a company's earnings, expenses, and net income over a specific period.

Ending Inventory

Merchandise value ready to be sold at the close of an accounting cycle.

Retained Earnings

The portion of net earnings not distributed as dividends, but retained by the company to be reinvested in its core business or to pay debt.

Accounting Principle

Guidelines and rules that govern the accounting practices and procedures.