A Company Contracts to Build a House for B,and the Contract

question 2

Multiple Choice

A Company contracts to build a house for B,and the contract expressly states that the contractor may from time to time use the services of subcontractors.In the course of performing the contract,one of the subcontractors negligently builds a wall,which falls over,destroying B's car.In this situation

• A)the damage to the car is too remote and neither A Company nor the subcontractor can be sued.
• B)only the subcontractor can be sued.
• C)only the contractor,A Company,can be sued.
• D)both the subcontractor and A Company can be sued.
• E)none of the above

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Definitions:

Self-Regulation

The process by which an organism effortfully controls its behavior in order to pursue important objectives.

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow, which outlines a hierarchy of human needs, from basic physiological needs to self-actualization.

Direct Labor

The earnings of staff members actively engaged in manufacturing products or delivering services.

Rate Variance

The difference between an expected rate and the actual rate charged, often analyzed in budgeting and performance evaluation.