Dave Operates a Small Guitar Shop Where He Makes and Sells

question 7

Multiple Choice

Dave operates a small guitar shop where he makes and sells guitars.One day he carelessly leaves flammable glue next to a heater.The shop burns down.The neighboring shop owned by Jane also burns.Jane sues Dave for negligence.

• A)Dave was obligated to take all steps needed to prevent the fire.
• B)Dave was obligated to take all reasonable steps needed to prevent the fire.
• C)Dave's obligation was limited to taking all steps customarily taken by small guitar shops to prevent such fires.
• D)Res ipsa loquitur applies.

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Definitions:

Simple Interest

Interest calculated only on the principal amount, or on that portion of the principal amount that remains unpaid.

Months

Units of time used in accounting and financial contexts to represent periods or durations, often for reporting, planning, or measurement purposes.

Promissory Note

A financial instrument that contains a written promise by one party to pay another party a definite sum of money either on demand or at a specified future date.

Maturity Date

The date on which a financial obligation must be repaid in full.