Trine Is a Judge Deciding a Negligence Case

question 22

Multiple Choice

Trine is a judge deciding a negligence case.In the case,the defendant says that they had a commercial relationship with the plaintiff and that she knew the plaintiff was relying on her statements,but claims she had no idea that her actions would injure the plaintiff.Trine is worried that this decision may prompt others to sue for the same thing.Which of the following is false?

• A)The suit does not pass the test of reasonable foreseeability if the defendant acted as a reasonable person would.
• B)The suit passes the test of proximity,but only if a direct causal connection is established.
• C)The suit passes the test of policy,but only if it doesn't interfere with political decisions.
• D)If the action was a professional statement,the plaintiff can only recover economic losses.
• E)If the defendant is part of a professional association,the plaintiff should also sue the association.

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Definitions:

Investment

The allocation of resources, such as time, money, or effort, in the expectation of generating an income or profit.

Dividend Yield

A metric indicating the proportion of a company's annual dividends in relation to its share price.

Par Preferred Stock

Preferred stock with a nominal value assigned in the corporate charter, which determines the issue price and face value for dividend calculations.

Par Common Stock

The nominal or face value assigned to a share of common stock, as stated in the corporate charter.