Arnie and Matt Are Involved in a Car Accident

question 38

Multiple Choice

Arnie and Matt are involved in a car accident.Immediately before the accident,Arnie was observed speeding and driving erratically.On the other hand,Matt was obeying the speed limit and driving in a very cautious and responsible manner.As a result of the accident,Matt's car needs $2,500 worth of repairs and Matt loses a week's salary because he has to take time off to recover from injuries sustained during the crash.Which of the following statements best describes the nature of the damages in this case?

• A) Both the repairs and the lost wages are compensatory damages.
• B) The repairs are compensatory damages, and the lost wages are consequential damages.
• C) The repairs are consequential damages, and the lost wages are compensatory damages.
• D) Both the repairs and the lost wages are consequential damages.

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Definitions:

Securities and Exchange Commission

A U.S. government agency that oversees securities transactions, activities of financial professionals and mutual fund trading to prevent fraud and intentional deception.

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