Kent Incorporated Dynamite Data Ltd

question 96

Multiple Choice

Kent incorporated Dynamite Data Ltd., which worked with small businesses in developing graphs and charts from their data for presentations to bankers, shareholders, etc. Kent lent the company $25,000 by way of a shareholder's loan and took as security computers, plotters, and printers under a General Security Agreement. An employee of the corporation, Jack, got into an argument with a customer named Roth while making a delivery. Roth was complaining that the graph was in red and not in pink as requested. It ended with Jack punching Roth, who fell onto a camera. The damage to Roth's nose and the camera totalled $35,000. Which of the following is true?

• A) The corporation is not liable for the damage caused by the action of its employee, Jack.
• B) Kent is liable for the damage to Roth and the camera if neither Jack nor the employer/corporation has sufficient funds.
• C) If the corporation went bankrupt but owed creditors (other than Roth), Kent would be in a worse position than unsecured creditors to collect proceeds realized from the sale of the corporation's assets.
• D) Even if Kent, the only shareholder, died, the corporation would not die and would still owe its outstanding debts.
• E) Roth's action against Jack is for the tort of assault.

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Definitions:

Large Computers

High-capacity, powerful computing systems often used in enterprise settings for large-scale computation, data processing, and complex tasks. These may include mainframes and supercomputers.

The CPU

The Central Processing Unit, which is the primary component of a computer that performs most of the processing inside a computer.

Data

Information that has been collected, organized, and can be interpreted or analyzed for various purposes.

Other Components

Additional parts, elements, or ingredients that are part of a larger system but not specified in the initial consideration.