Phillip Was Waiting for a Bus at a Bus Stop

question 40

Multiple Choice

Phillip was waiting for a bus at a bus stop.Across the street and down the block,a mechanic negligently overinflated a tire he was intending to put onto Marsha's pickup truck.The exploding tire injured Marsha and frightened a neighborhood dog,which ran down the street and knocked Phillip down,injuring his knee.Phillip sued the mechanic.In applying the Palsgraf v.Long Island Railroad Co.decision to this case,Phillip would

• A)win because the mechanic was negligent in overinflating the tire, which led to Phillip's injury.
• B)win based on negligence per se.
• C)lose because the court would apply the doctrine of res ipsa loquitur.
• D)lose because, although the mechanic's conduct was negligent toward Marsha, it was not a wrong in relation to Phillip, who was far away. The mechanic could not have foreseen injury to Phillip and therefore had no duty to him.

---

Definitions:

Bond Premium

The additional amount over the face value that investors are willing to pay for a bond, typically because it offers a higher interest rate than the prevailing market rate.

Annual Interest Payment

The total amount of interest to be paid each year on a loan, bond, or other financial instrument.

Straight-line Method

A depreciation method that allocates an equal portion of the initial cost of an asset to each year of its useful life.

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return, accounting for time value of money.