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I agree with your analysis. I'll wager though that there are very very few examples of the legislation being enacted without there being an accident.I don’t think that the legislation is saying that it ‘involves’ injury or damage but that it could foreseeably lead to …..
The legislation, like much other legislation, is drafted in such a way that the judgement is based on the view likely to be taken by other competent cyclists.
In other words, i) would other competent cyclists take the view that his/her actions were reasonable, and ii) would other competent cyclists have foreseen the potential consequences of such action (in terms of the potentially dangerous outcome).
Ian