A Is Employed by B as a Truck Driver

question 36

Multiple Choice

A is employed by B as a truck driver.C is A's partner,and they go on deliveries together.One day,while backing up the truck,A drives negligently and injures C.C successfully sues B on the basis of vicarious liability.In a law suit by B against A

• A)the court will try to create a new employment contract between A and C so as to allow C to recover from A.
• B)the court will imply a term into A's contract of employment with B that A will take reasonable care and skill in the performance of his duties.
• C)the court will not imply any term into A's contract of employment with B.
• D)the court will look to custom and usage of the trade to determine whether it should imply a term in the employment contract between A and C.
• E)none of the above

---

Definitions:

Risk Management Strategy

A process of identifying, assessing, and controlling threats to an organization's capital and earnings.

Net Exposure Basis

A method of measuring risk that combines both the gross positive and negative positions to determine an entity's overall exposure.

Equity Instrument

A type of financial security that signifies ownership in a company and represents a claim on part of the company's assets and earnings, such as stocks.

Market Participant

An entity or individual with the willingness and ability to buy, sell, or otherwise engage in transactions in a market.