Trans- Man Shipping, Which Is Based in Winnipeg, Offered to Deliver

question 38

Multiple Choice

Trans- Man Shipping, which is based in Winnipeg, offered to deliver "anything, anywhere anytime." Rosie entered into a contract with Trans- Man Shipping to send an antique phonograph from Portage La Prairie to Brockville. The phonograph was lost in transit. Rosie claimed the value of the phonograph under a policy that she had purchased from The Pas Insurance Co. Despite the loss, Trans- Man Shipping feels protected from the effects of liability by a policy that it purchased from Brandon Insurance Co. Which of the following statements is most likely TRUE?

• A) Rosie purchased a third party insurance policy.
• B) Trans- Man Shipping acted as a bailor.
• C) If one insurance company is compelled to pay a benefit, the other could not possibly be compelled to pay a benefit.
• D) Trans- Man Shipping can be held liable only if it deliberately or carelessly damages the phonograph.
• E) The Pas Insurance Company sold a first part insurance policy.

---

Definitions:

Competitive Market

An economic scenario where numerous producers and consumers interact, ensuring prices are determined by supply and demand forces without significant influence by any single participant.

Sunk Costs

Expenses that have been incurred and cannot be recovered, regardless of future actions.

Competitive Market

A market structure where many buyers and sellers exchange homogeneous products and no single participant has the power to significantly influence the price of the product.

Economic Profits

The difference between the total revenue earned by a business and the total costs (both explicit and implicit) of all inputs used, representing the additional gain over and above the opportunity costs.