What Was the Ruling of the Court in the Case

question 30

Multiple Choice

What was the ruling of the court in the case of Welge v.Planters Lifesavers Co.,the case in which the plaintiff injured his hand when a jar containing peanuts broke?

• A) That the case would be dismissed because the plaintiff could not establish that the jar was maintained in a pristine condition after its purchase.
• B) That the plaintiff was unable to recover because negligence in manufacture of the jar could not be established.
• C) That the plaintiff was unable to recover because he was not the actual purchaser of the jar of peanuts.
• D) That the plaintiff would be allowed to proceed because negligence was established.
• E) That the plaintiff would be allowed to proceed with the lawsuit because of a lack of evidence that the jar had been damaged after its purchase.

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Definitions:

Bondholders

Individuals or entities that hold the debt securities issued by corporations or governments, known as bonds.

Gain or Loss

The financial result from a transaction when the selling price of an asset differs from its book value.

Bonds

Long-term debt securities issued by corporations and governments to raise funds, paying interest to holders.

Effective-Interest Method

An accounting practice used to amortize the discount or premium on bonds payable over the bond’s life, reflecting a constant rate of interest.