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"how will the self driving car know whether to flatten the granny in the road or the child on the pavement?!"
hopefully the self driving car won't be in that situation as its only job is to actually pay attention to the road, won't be able to break the speed limit, and won't be distracted by a facebook notification.
bigshape
In almost all situations, if you feel like there's actual danger the right answer is to remain in a straight line (or straight along the road) and brake. This is also the answer to the supposed conundrum of "how will the self driving car know whether to flatten the granny in the road or the child on the pavement?!"