The Cost-Benefit Approach to Assessing Reasonableness of Negligence Holds Behavior

question 30

Multiple Choice

The cost-benefit approach to assessing reasonableness of negligence holds behavior to be unreasonable if:

• A)the discounted value of the harm is less than the cost to avoid the harm.
• B)the present value of the possible loss is lesser than the expense required to avoid the loss.
• C)the behavior is intentional.
• D)the present value of the possible loss is greater than the expense required to avoid the loss.
• E)the plaintiff knew of the dangers involved in the act that resulted in harm.

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Definitions:

Capital Contribution

The value of cash, property, or other assets that members or partners contribute to a company or partnership.

Repayment

The action of paying back borrowed money, typically with interest, according to the terms of a loan agreement.

Joint And Several Liability

A legal doctrine where multiple parties can be held liable together or individually for the full amount of restitution or damages.

Negligently

A rephrased definition: Acting with a lack of proper care or attention that a reasonably prudent person would exercise in similar circumstances.