Pete and John Had Been Hired by the Same Computer

question 28

Multiple Choice

Pete and John had been hired by the same computer consulting company. They worked a 3-hour shift and walked to a pub, where they had several beers. John said he'd drive Pete home. Pete knew John had been drinking but agreed to go with him anyway. The alcohol affected John's driving. He lost control of the car, which crashed through Mr. Britt's fence and Britt's garage. Pete was injured. John was not injured. Britt's neighbour, Mr. Watson, called the police. John was charged with the offence of driving while impaired and was found guilty in the criminal proceedings. Given these facts, which of the following is true?

• A) Since Mr. Britt was not physically injured, he could not sue.
• B) Mr. Watson, the neighbour, could successfully sue John for negligence.
• C) Pete could sue John for negligence, but if the court held that Pete volunteered to take the physical and legal risk (volenti non fit injuria), Pete would get no award of damages.
• D) The principle of vicarious liability is relevant here because John was an employee at the time of the accident. John was charged with an offence; no one could sue him in a civil action for compensation.
• E) One court action is all that is allowed.

---

Definitions:

Reinvestment Rate

The rate of return available to investors when they reinvest the earnings from an investment during the life of that investment.

Coupon Interest

The periodic interest payment that bondholders receive from the bond's issuer during the bond's life.

Prevailing Reinvestment Rate

The current market interest rate at which cash flows from an investment can be reinvested.

Compound Yield

The rate of return on an investment or loan, considering the effect of compounding interest.