The 'Neighbour Principle' Formulated in the Decision of Donoghue V

question 28

Multiple Choice

The 'neighbour principle' formulated in the decision of Donoghue v Stevenson (1932) AC 562 provides:

• A)one must take reasonable care to avoid acts or omissions that are reasonably foreseeable to likely injure any person one would reasonably have foreseen would be so injured.
• B)a decomposed snail might reasonably be expected to enhance the flavour of ginger beer.
• C)manufacturers will not generally be liable to consumers for defects in their products because there is no contract between the manufacturer and the consumer.
• D)every person has a non-delegable duty not to cause harm to their next-door neighbour.

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Definitions:

Monotonic Transformation

A monotonic transformation involves a function that either entirely increases or decreases, preserving the order of the original function’s elements.

Cobb-Douglas Preferences

A utility function used in economics to represent preferences of consumers, characterized by goods being perfect substitutes or complements to some degree.

Utility Function

An expression used in economics to quantify the happiness or satisfaction gained from consuming a set of goods or services.

Consumption Bundle

A combination of different goods and services that a consumer chooses to purchase at a given time.