In MacPherson V

question 226

Multiple Choice

In MacPherson v. Buick, where the wheel on a new Buick collapsed, causing the car to crash, injuring MacPherson, the court of appeals held MacPherson could sue Buick because:

• A) Buick was a manufacturer of automobiles and responsible for the finished product
• B) Buick was a wealthy enough company to afford paying damages
• C) Buick was liable because it advertised that the wheels were safe on every vehicle
• D) MacPherson's injuries were life-threatening
• E) none of the other choices are correct

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Definitions:

Rate of Return

The positive or negative change in the worth of an investment, quantified over a predetermined period and depicted as a percentage of the initial investment cost.

Portfolio

A collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including mutual funds and ETFs.

Successive Years

Successive years that occur back-to-back without any breaks.

Compounded Quarterly

A method of calculating interest where it is added to the principal four times a year, after every three months, leading to faster growth of the investment.