Max Worked in a Warehouse Owned by Fortress Storage Inc

question 43

Multiple Choice

Max worked in a warehouse owned by Fortress Storage Inc. His job consisted mainly of moving and storing expensive and sensitive pieces of computer equipment that Fortress had received from its customers. Unfortunately, while Max normally was among the company's most trusted workers, he carelessly dropped a computer that belonged to HAL Inc and that HAL had asked Fortress to store. Which of the following statements is TRUE?

• A) The court may apply the doctrine of vicarious liability only if Fortress has liability insurance.
• B) Max may be vicariously liable for Fortress's tort even if HAL's equipment was damaged while Max was doing something that Fortress had told him not to do.
• C) If Fortress is held vicariously liable, then HAL will be prevented from suing Max.
• D) As a matter of risk management, Max and Fortress both should have purchased liability insurance.
• E) Fortress may be vicariously liable only if a court decides that Max is not liable.

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Definitions:

Transitory Income

Income that is temporary or not consistent, such as bonuses, gifts, or any other earnings that are not regular or guaranteed.

Absolute Level

A specific, fixed point or quantity that is not relative or compared to any other point or quantity.

Federal Government

The national government of a federated state, which shares powers with subnational governments under a system of federalism.

Maximin Criterion

A decision rule used under uncertainty, focusing on maximizing the minimum payoff or outcome.