Pete and John Had Been Hired by the Same Computer

question 28

Multiple Choice

Pete and John had been hired by the same computer consulting company. They worked a 3-hour shift and walked to a pub, where they had several beers. John said he'd drive Pete home. Pete knew John had been drinking but agreed to go with him anyway. The alcohol affected John's driving. He lost control of the car, which crashed through Mr. Britt's fence and Britt's garage. Pete was injured. John was not injured. Britt's neighbour, Mr. Watson, called the police. John was charged with the offence of driving while impaired and was found guilty in the criminal proceedings. Given these facts, which of the following is true?

• A) Since Mr. Britt was not physically injured, he could not sue.
• B) Mr. Watson, the neighbour, could successfully sue John for negligence.
• C) Pete could sue John for negligence, but if the court held that Pete volunteered to take the physical and legal risk (volenti non fit injuria), Pete would get no award of damages.
• D) The principle of vicarious liability is relevant here because John was an employee at the time of the accident. John was charged with an offence; no one could sue him in a civil action for compensation.
• E) One court action is all that is allowed.

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Definitions:

Municipal Bonds

Fixed-income securities issued by cities, states, or other local government entities to finance public projects.

Taxable Corporate Bond

A fixed-income security issued by a corporation that is subject to taxes on the interest income received by the bondholder.

Pretax Equivalent

Pretax Equivalent is a term used in finance to describe the gross amount of income or yield before taxes are deducted, useful for comparing investments with different tax treatments.

Uncollected Receivables

Amounts owed to a company by customers for goods or services delivered but not yet paid for.