Which of the Following Statements Is TRUE with Respect to the Test

question 42

Multiple Choice

Which of the following statements is TRUE with respect to the test that Canadian judges apply to determine the existence of a duty of care?

• A)Policy concerns usually relate to the relationship between the parties.
• B)Proximity concerns usually relate to the effect that a duty of care would have on society generally.
• C)Canadian judges recently switched from a two-part test to a three-part test.
• D)The fear of opening the floodgates is usually addressed under the heading of reasonable foreseeability.
• E)The fear of interfering with political decisions is usually addressed under the heading of proximity.

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Definitions:

Par Value

The face value of a bond or stock, representing the amount that will be paid back at maturity.

Maturity Date

The date on which a financial instrument such as a bond or loan agreement is due to be repaid in full.

Sinking Fund Provision

A clause in a bond or other long-term debt instrument that requires the issuer to set aside funds regularly to repay the debt before it matures.

Bond Indenture

A legal contract specifying all the terms and conditions between a bond issuer and bondholder, including obligations, rights, and protections.