A CoIs a Carrier of Goods

question 32

Multiple Choice

A Co.is a carrier of goods.A Co.uses a standard form contract that contains a provision which states that the risk of loss is to be borne by the owner of the goods and that A Co.will not be held liable for its negligence or the negligence of its employees.In the course of carrying B's goods,one of A Co.'s employees is negligent and the goods are damaged.In this situation

• A)only the employee who was negligent will get the benefit of the provision in the contract.
• B)both A Co.and the employee who is negligent will get the benefit of the provision in the contract.
• C)neither A Co.nor the employee will get the benefit of the provision in the contract.
• D)only A Co.gets the benefit of the provision in the contract.
• E)the provision in the contract is void as against public policy.

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Definitions:

Product Cost

The total cost associated with making or acquiring a product, including raw materials, labor, and overhead expenses.

Factory Overhead Cost

Expenses related to producing goods that are not directly traceable to products, including utilities and manager salaries at a production facility.

Factory Burden

Another term for manufacturing overhead or factory overhead.

Materials Inventory

The cost of materials that have not yet entered into the manufacturing process.