When describing the VM Monitoring service behaviour, slide notes state:
Virtual machine monitoring restarts individual virtual machines if their VMware Tools heartbeats are not received [...].
[...] the virtual machine monitoring service determines that the virtual machine has failed and the virtual machine is rebooted to restore service.Correct:
In case of a guest operating system failure detected by VM Monitoring, the failed virtual machine is reset, not restarted, neither rebooted.Source:
vSphere 5.1 Documentation Center.