Which of the Following Was the Result on Appeal in Caliber

question 41

Multiple Choice

Which of the following was the result on appeal in Caliber One Indemnity Co. v. Wade Cook Financial Corp. and Diana K. Carey, the case in the text in which the plaintiff claimed relief on the basis that the limit of insurance coverage for earthquake damage was reduced from $5,000,000 to $500,000 due to a mutual mistake?

• A) That the plaintiff was not entitled to relief on the basis that a representative of the plaintiff should have read the contract and noticed the mistake.
• B) That because both parties were negligent in not catching the mistake, the mutual-mistake doctrine was inapplicable resulting in no relief to the plaintiff.
• C) That the plaintiff was not entitled to relief because the mistake was not related to a basic assumption on which both parties relied when making the contract for all types of property insurance.
• D) That the plaintiff was entitled to relief based on the mutual-mistake doctrine.
• E) That the plaintiff was entitled to relief based on the unilateral-mistake doctrine.

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Definitions:

Current Liabilities

Current liabilities are a company's debts or obligations that are due to be paid within a year, including accounts payable, short-term loans, and accrued expenses.

Debt to Equity Ratio

A financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets.

Total Liabilities

The total of all financial obligations a company owes to outside parties, including debts, accounts payable, and other obligations.

Stockholders' Equity

Stockholders' Equity is the residual interest in the assets of a corporation that remains after deducting its liabilities.