In Palsgraf V

question 122

Multiple Choice

In Palsgraf v. Long Island Railroad, where Palsgraf was hit by machinery that fell when an explosion occurred at a train station, and she sued the railroad for negligence, the New York high court held that the railroad:

• A) was negligent for exposing Palsgraf to danger, so could be liable for her injury
• B) was negligent for exposing Palsgraf to danger, but the cause of the accident was a careless passenger, not the railroad, so it was relieved of liability by intervening conduct
• C) was negligent for exposing Palsgraf to danger, but the explosion was not the proximate cause of the accident, so there was no liability
• D) was negligent for exposing Palsgraf to danger, but its actions were not a substantial factor in what caused the accident, so there was no liability
• E) none of the other choices are correct

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Definitions:

Vertical Analysis

A method of financial statement analysis in which each entry for each of the three major categories of accounts (or assets, liabilities, and equity) is represented as a proportion of the total account.

Net Income

The total earnings of a company after accounting for all expenses and taxes; also known as net profit.

Net Sales

represents the amount of sales revenue remaining after deducting returns, allowances for damaged goods, and discounts.

Percentage Increase

A mathematical calculation that determines the degree of growth of a figure or value in comparison to its original amount, expressed as a percentage.