Final answer:
In cases of negligence, both the bystander in the zone and a present family member who observed the incident can potentially recover damages for emotional distress, but physical injury must also be present.
Step-by-step explanation:
In cases of negligence that create foreseeable risk and cause emotional distress, both the bystander in the zone and a present family member who observed the incident may be able to recover damages for emotional distress, but only if physical injury is also present. Therefore, option 3) Both the bystander in the zone and a present family member who observed the incident can recover damages for emotional distress.
This concept is supported by the bystander effect, which is a phenomenon where witnesses or bystanders do not volunteer to help a victim or person in distress. In situations like these, the law recognizes that individuals who directly witnessed the incident and suffered physical injuries may also experience emotional distress as a result.