Which of the Following Is True Regarding the Bank's Claim

question 24

Multiple Choice

Which of the following is true regarding the bank's claim that it should be able to recover under the res ipsa loquitur doctrine?

• A) The bank is correct because under that doctrine defendants are liable for any harm caused.
• B) The bank is correct only if Holly has sufficient insurance to cover the bank burning.
• C) The bank is correct only if it can be established that Holly was a repeat driving offender.
• D) The bank is incorrect because the issue here is causation, not whether there was a lack of due care.
• E) The bank is incorrect because res ipsa loquitur is a defense.

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Definitions:

Period Cost

A financial term referring to costs that are not directly tied to the production process and are expensed in the period in which they are incurred.

Sales Revenues

The revenue a company earns from selling products or offering services.

Cost of Goods Sold

The direct costs attributable to the production of goods sold by a company, including the cost of materials and labor.

Production Levels

The quantity of goods or services produced within a specified period, often measured in units, volume, or output.