The 'Scope of Liability' Test in Remoteness of Harm in a Negligence

question 19

Multiple Choice

The 'scope of liability' test in remoteness of harm in a negligence action requires the plaintiff to prove that:

• A)the kind of harm was reasonably foreseeable.
• B)the harm has some proximity to the breach.
• C)the harm was unreasonably close to the location of the plaintiff's body or dwelling.
• D)the harm caused by the defendant was libellous or intentional.

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Definitions:

Labor

Human effort used in the production of goods and services.

Perfect Competition

A market structure characterized by a large number of small firms, identical products sold by all firms, no barriers to enter or exit the market, and perfect knowledge of prices and technology.

Marginal Product

The additional output produced as a result of employing one more unit of a particular input while keeping other inputs constant.

Value of Marginal Product

The extra revenue a firm gains by employing an additional unit of input.