Andy Owns a Chain of Dry- Cleaning Stores in the Toronto

question 60

Multiple Choice

Andy owns a chain of dry- cleaning stores in the Toronto area. Business is good and continues to grow, but Andy is concerned about holding costs down. The Environmental Protection Act makes it an offence to knowingly release a contaminant, like dry- cleaning fluid, which contains dangerous cancer- causing polychloral biphenals (PCBs) , into the environment. Instead, all used dry- cleaning fluid must be stored and recycled in a provincially monitored "closed system" of disposal. Andy contravenes the law by flushing several hundred litres of used fluid down the drain, causing death to hundreds of waterfowl that nest near Toronto municipal reservoirs. Andy becomes subject to investigation after provincial officials correlate the mysterious bird deaths with his underreporting of deposits to the provincially monitored disposal scheme. A prosecution under the law ensues. Which of the following is TRUE?

• A) Andy is liable even if he was careful to avoid the release of the contaminant.
• B) Andy is not liable if the birds would have died even if the contaminant had not been released.
• C) Andy is liable only if he knowingly violated the law.
• D) Andy is not liable if the release of the contaminant was by one of his employees and not him personally.
• E) None of the above.

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Definitions:

Direct Labor

The labor cost of workers who are directly involved in the production of goods or the provision of services.

Factory Overhead

All indirect costs associated with manufacturing, excluding direct labor and direct materials.

Direct Labor

The labor cost directly attributed to the production of goods or services, typically wages paid to those on the manufacturing floor.

Direct Materials

Raw materials that can be directly traced to the production of a product and are an integral part of the finished product.