Jamari Negligently Hit Samantha on the Head with a Stick

question 25

Multiple Choice

Jamari negligently hit Samantha on the head with a stick.A reasonable person would expect the normal victim to suffer a simple bruise in that situation.A simple bruise would require compensation of $200.Samantha, however, actually suffered brain damage because she had an unusually fragile skull.Her losses have been valued at $5 million.Which of the following statements is TRUE?

• A)Jamari is liable for $5 million in damages payable to Samantha.
• B)Jamari is liable for $200.
• C)Jamari is not liable for any damages because the actual consequences of his negligence were not reasonably foreseeable.
• D)Jamari is liable for $5 million only if he actually knew that Samantha had a fragile skull before he hit her.
• E)Jamari is liable for $5 million only if Samantha knew that she had a fragile skull before the accident occurred.

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Definitions:

Market Rate

The market rate refers to the current price or interest rate of a commodity, security, labor, or currency in the marketplace.

Straight-Line Amortization

A method of reducing the value of an intangible asset over a fixed period of time evenly.

Bonds

Long-term debt securities issued by corporations or governments, promising to pay the bondholder a specified sum of money at future dates.

Issuance

The process of distributing new or existing securities for sale to investors.