Senator Hotair, Mary's Uncle, Has Become Disgusted with Joe

question 50

Multiple Choice

Senator Hotair, Mary's uncle, has become disgusted with Joe. At a press conference the Senator attacks Joe, calling him names, saying he is a disgusting person and must be crazy. This is printed widely. Joe wants to sue the Senator for defamation. He can sue:

• A) and possibly win
• B) but will lose because the Senator is a public figure
• C) but will lose because Joe is a private figure, so public comments about him are irrelevant
• D) but will lose because members of Congress have immunity from suits for their statements
• E) but will lose because of the free speech and debate clause of the Constitution

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Definitions:

Moral Hazard

The situation where one party is more likely to take risks because the negative consequences of those risks will be felt by another party.

Asymmetric Information

Occurs when one party in a transaction has more or superior information compared to another, affecting decision-making.

Moral Hazard

A situation in economics and finance where one party takes more risks because another party bears the cost of those risks.

Auto Insurance

A policy purchased by vehicle owners to mitigate costs associated with getting into an auto accident or other vehicle-related damages.