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

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Definitions:

Historical Rate

Refers to the exchange rate between two currencies at a past date, useful for historical financial analysis.

Pooling of Interests Method

An accounting method that treats the companies involved in a merger or acquisition as if they have always been a single entity, combining their financial statements without recognizing any new goodwill.

Business Combinations

Transactions or other events in which an acquirer gains control over one or more businesses.

Artificially High Amounts

Figures or values that have been inflated through accounting practices or activities that do not reflect the true economic value or performance.