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Psi Corp Owned a Ship Called the Greek

Question 13

Multiple Choice

Psi Corp owned a ship called The Greek.It intended to use that ship to fulfill a contract with Omega Inc under which it promised to deliver widgets from Vancouver to Los Angeles.If it failed to perform that contract,it would be required to pay $5 million to Omega Inc.Wilson negligently created a fire that destroyed The Greek.Psi Corp wanted to buy a replacement ship for the purpose of performing its contract with Omega Inc,but could not immediately afford the purchase price of $20 million.It therefore rented a ship,The Canadian,for $2 million and used it to fulfill its contractual obligation.Psi Corp has successfully sued Wilson for negligence.The court agrees that Psi Corp is entitled to $20 million,which was the value The Greek.Psi Corp,however,claims that it is also entitled to $2 million,representing the money that it was required to pay in order to rent The Canadian.Which of the following statements is TRUE with respect to Psi Corp's claim for $20 million?


A) That claim is properly decided under the concept of an intervening act.
B) That claim will probably fail because there was a lack of factual causation.
C) That claim will probably fail because there was no duty of care.
D) That claim traditionally would have failed because the relevant loss is partially attributable to the plaintiff's own impecuniosity.
E) That claim will be decided by the crumbling skull rule.

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