In which scenarios does the "same transaction or occurrence" test apply?

The "same transaction or occurrence" test is a fundamental concept in civil procedure that determines when parties or claims can be joined in a single lawsuit. This test applies to both permissive joinder of parties and compulsory joinder of claims, making the answer correct.

In the context of permissive joinder of parties, this test allows multiple plaintiffs or defendants to join in a single action when their claims arise out of the same transaction or occurrence. This is important because it promotes efficiency by consolidating related matters into one suit rather than requiring multiple, separate actions that could lead to conflicting outcomes.

Similarly, for compulsory joinder of claims, the same test applies, allowing parties to bring intertwined claims in one action. This ensures that all related issues are resolved together, which helps avoid the risk of inconsistent judgments and ensures complete relief can be granted to the parties involved.

Thus, by recognizing that both scenarios—permissive joinder of parties and compulsory joinder of claims—rely on the "same transaction or occurrence" test, we see why this option is the most comprehensive and accurate choice.