Kendra Suffered a Broken Back as a Result of Duncan's

question 34

Multiple Choice

Kendra suffered a broken back as a result of Duncan's carelessness.Duncan has argued, however, that Kendra's injury is remote from his carelessness, and that he therefore cannot be held liable.Which of the following statements is TRUE?

• A)Duncan cannot be held liable unless the manner in which Kendra suffered her injury was reasonably foreseeable.
• B)Duncan cannot be held liable unless the type of harm that Kendra suffered was reasonably foreseeable.
• C)If Kendra was unusually vulnerable to a back injury, Duncan cannot be held liable unless the severity of Kendra's injury was reasonably foreseeable.
• D)Duncan cannot be held liable unless Kendra's injury was likely to occur as a result of his carelessness.
• E)Duncan will be held liable only if Kendra's injury was a direct result of his carelessness.

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Definitions:

Break-Even

The point at which total costs and total revenue are equal, resulting in no net loss or gain.

Sales Dollars

refers to the total revenue generated from selling goods or services before any deductions like returns or discounts are made.

Period Cost

Expenses that are not directly tied to production activities and are charged to the period in which they occur.

Absorption Costing

A financial approach that encompasses all production expenses - such as direct materials, direct labor, along with variable and fixed overheads - within the price of a product.