Use This Fact Situation to Answer the Related Questions That

question 22

Multiple Choice

Use this fact situation to answer the related questions that follow. Albert,who is a sole proprietor who wants to expand his present business,which makes and supplies plastic containers,has decided to incorporate his business to limit his liability.Yesterday,Albert signed the articles of incorporation at the office of his lawyer,just before he had a business meeting with a large retail store.During that meeting Albert agreed to manufacture and supply 20 000 plastic containers to the retail store.Thinking that his new company would be incorporated shortly,Albert decided to sign the contract on behalf of a corporation to be incorporated.A couple of days later Albert's lawyer told Albert that his new company had been incorporated.A month went by during which the retail store found that the containers were defective,and since there was no warrantee on them,the store spent $15 000.00 to repair them.
In this case,in bringing a lawsuit,the store will consider

• A)that Albert's assets can be seized to satisfy a judgment.
• B)that liability will rest with Albert and not his new company.
• C)that Albert's new company has not adopted the contract.
• D)that Albert signed the contract on behalf of a company to be incorporated.
• E)all of the above

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Definitions:

Payoff Matrix

A table that shows the potential outcomes or returns (payoffs) from various strategies taken by one or more participants in a game or strategic decision situation.

Extensive Form

A way of representing a game in game theory, showing the sequences of moves and choices available to players, including the outcomes of those choices.

Strategic Game

A scenario in decision-making where the outcome for each participant or player depends on the choices of all involved.

Corporate Coffee

Refers to coffee chains and brands that are large, often multinational corporations, such as Starbucks, known for their standardized coffee products and experiences.