Question

In: Accounting

Kent owns a large 4 wheel drive vehicle which he uses for off road rallies and...

Kent owns a large 4 wheel drive vehicle which he uses for off road rallies and towing his boat. Kent parks the vehicle on the side of the road outside his house which is half way down a steep hill. One day he fails to put on the hand brake or ensure that the engine is in gear. A passing cyclist pauses for rest while climbing the hill and leans against Kent’s vehicle. This causes the vehicle to begin moving forward and within seconds it is rolling down the hill out of control at a speed of some 70kph. Albert is coming up the hill on his motor cycle and is forced to swerve to avoid Kent’s vehicle and crashes into a lamp post. Albert is not injured but his $30,000 motor cycle is written off. The vehicle continues to speed down the hill until it crashes into Cornwall’s house. The damage to the house amounts to some $50,000. Gloucester, who lives next door to Cornwall, is so shocked by the sound of the impact that he spills a glass of neat malt whiskey on to his entertainment centre which catches fire and burns down his $500,000 home.

Required:

Advise Kent, with reasons, whether he is liable for the losses suffered by Albert, Cornwall or Gloucester.

Solutions

Expert Solution

As per the given case, the vehicle of kent is parked on the roadside which is halfway down a steep hill. As he fails to put on the hand brake or ensure that the engine is in gear. Till then the car is in a stable situation but when a cyclist leans against Kent's vehicle then the car got out of control and caused damage for Albert amounted to $30,000 and to Cornwall amounting to$50,000 directly.

The damage to the house amounts to some $50,000. Gloucester, who lives next door to Cornwall, is so shocked by the sound of the impact that he spills a glass of neat malt whiskey on to his entertainment centre which catches fire and burns down his $500,000 home. As the damage caused to Gloucester is not directly by the car of kent so Kent is Not liable to pay the damages for Gloucester.

The cause for the damage is the cycler who leaned on the car but the medium of the damage caused is the car of kent. Therefore kent is liable to pay the damages to Albert for $30,000 and to Cornwall for the amount $50,000.


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