A Court Is Now Considering a Question of Remoteness with Respect

question 34

Multiple Choice

A court is now considering a question of remoteness with respect to a plaintiff's injury.Plaintiff's counsel has argued the injury was a direct result of the negligent act of the defendant.Which element of this tort action must have already been established in step two?

• A) Will compensation discourage legitimate business activity?
• B) Was the injury suffered too remote?
• C) Is the imposition of a standard of care unreasonable?
• D) Did the defendant breach the standard of care?

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Definitions:

Compensating Balance

A minimum bank account balance that a borrower is required to maintain as a condition for some forms of loans or line of credit.

Petty Cash Fund

A small amount of cash kept on hand to pay for minor, incidental expenses of a business, recorded as a current asset on the balance sheet.

Cash Short

A situation where the actual cash on hand is less than the recorded amount in the accounting records, often resulting in a discrepancy during reconciliation.

Petty Cash Receipts

Documentation of small amounts of cash expenditures from a petty cash fund, used for minor business expenses.