Chantal Has Sued Phi Corp for Negligence

question 12

Multiple Choice

Chantal has sued Phi Corp for negligence.Which of the following statements is TRUE with respect to the duty of care?

• A)Since it is based on the reasonable person test, a duty of care can be owed by a person to a corporation but not by a corporation to a person.
• B)A duty of care will be imposed on Phi Corp unless it proves that Chantal was not a reasonably foreseeable victim of its carelessness.
• C)A duty of care will not be recognized unless Chantal suffered a physical injury.
• D)A duty of care will be recognized only if Phi Corp and Chantal had a pre-existing relationship.
• E)The court will conduct a full inquiry into the existence of a duty of care only if the facts of the case do not fall within a recognized category.

---

Definitions:

Breach of Warranty

The failure to fulfill the terms of a warranty, either express or implied, regarding the condition, functionality, or quality of a product or service.

FTC Rule 433

A regulation also known as the "Holder in Due Course" rule, which protects consumers when they finance the purchase of goods or services.

Defective

Lacking in some necessary quality, faulty, or having defects, making it unfit for its intended use.

Primarily Liable

Being directly responsible for a debt or obligation, without secondary parties to share the liability.