Which of the Following Is a Defense That a Defendant

question 6

Multiple Choice

Which of the following is a defense that a defendant could raise in an action based on strict liability?

• A) The plaintiff negligently failed to observe a sign on a highway warning of blasting operations and was injured from the operations.
• B) The owner of a car knowingly and voluntarily parked his vehicle in a blasting zone as a result of which the car was damaged.
• C) A child played with a neighbor's pet raccoon which had escaped from its cage. The child teased the pet and was bitten.
• D) All of these are valid defenses which would be successful if raised by the defendant.

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Definitions:

Cash Flow Forecasts

Estimates of the amount of money expected to flow in and out of a business over a specific period, used for budgeting and financial planning purposes.

NPV

Net Present Value is the difference between the current value of cash inflows and the current value of cash outflows over a period of time, used in capital budgeting to assess the profitability of an investment.

Simulation Analysis

A combination of scenario and sensitivity analyses.

Capital Budgeting

The process by which investors and managers decide which long-term projects or investments a business should undertake, based on potential profitability.