Betty Webster was driving her car, talking on her cell phone about the latest episode of "The Bachelorette", and didn't notice that Flip Phillip's car just ahead of her had stopped. She rear-ended Flip, causing him whiplash
Which of the following is true?
A) Betty owed Flip a duty of care.
B) It was reasonably foreseeable that another driver might be injured by Betty if she was careless.
C) Betty was not careless as many drivers talk on cell phones as they drive.
D) Flip was contributorily negligent because he should have anticipated that Betty might hit him when he saw her talking on her cell phone.
E) Both A and B
E
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The president of a company says that new products to be introduced are sure to double company profits. Based on this, investors buy stock in the company, pushing up its price. The products flop, the company loses money, so the stock price falls. Investors are most likely to sue the president of the company under what theory provided by the securities law?
a. liability for mismanagement b. liability for insider trading c. liability for misstatements d. liability for securities negligence e. none of the other choices; there is no basis for a lawsuit here
What is the current value of a share of MoreGro common stock that does not pay a current dividend? Earnings are growing at a 20 percent per year rate for the next 10 years. Assume the investor has a required rate of return of 15 percent and expects to sell the security in 5 years. Current earnings are $1.50 per share
A) $56.87 B) $62.21 C) $25.00 D) There is insufficient information to solve this problem.