Incorrect
The rule states that the give-way vessel must keep well away from the boat it is overtaking that is stopping, slowing down, or changing course. In the event that the give-way vessel does not take appropriate action (ie Capt. Bonehead) the stand-on vessel should try to take action to avoid collision (ie common sense - get out of the way).
In this case the stand-on vessel did look behind, did not see the oncoming boat due to nightfall and overtaking vessel's speed and therefore is absolutely NOT at fault. The give-way vessel clearly was too close, traveling too fast, and did not give adequate clearence.
give-way vessel
The vessel that is required to take early and substantial action to keep well away from other vessels by stopping, slowing down or changing course
stand-on vessel.
The vessel that must maintain its course and speed unless it becomes apparent that the give-way boat is not taking appropriate action; if you must take action, do not turn toward the give-way boat or cross in front of it.
Had the stand-on vessel been able to see the overtaking boat, then they should maintain course (if possible). However, the onus is on the overtaking give-way vessel to mitigate such factors by taking "early and substantial action to keep well away."
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