Jack Kihn Incorporated and Put $20,000 into the Corporation by Way

question 111

Multiple Choice

Jack Kihn incorporated and put $20,000 into the corporation by way of a shareholder's loan and took back a Security Agreement on the corporation's equipment. The corporation created decorative boxes. An employee of the company delivered some boxes to a customer who complained about the colour used. The employee became so angry that he shoved the customer, who fell into a glass display case, causing $30,000 damage to the customer and the case. On these facts, which of the following is false?

• A) The employee is liable for the tort of battery.
• B) The employee is liable for his tort and his employer is also liable.
• C) Kihn himself is vicariously liable for the damage caused by the employee.
• D) If the corporation went bankrupt, Kihn himself would be a secured creditor.
• E) Although Kihn is the sole shareholder of the corporation, he is not responsible for company debts.