Which of the Following Is Incorrect with Respect to the Law

question 53

Multiple Choice

Which of the following is incorrect with respect to the law of infants and their parents?

• A) As a general rule, parents are not responsible for the contracts of their children.
• B) As a general rule, parents are not responsible for the torts of their children.
• C) A parent is responsible for the debt of his child if that parent has guaranteed the loan.
• D) A parent can be liable for a tort committed by her child if it can be shown that the parent was negligent as well.
• E) A parent is responsible for the obligations of her children in both tort and contract law.

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Definitions:

Doubtful Debts

Accounts receivable that a company believes are unlikely to be collected due to the debtor's financial difficulties.

Key Management Personnel

Individuals having authority and responsibility for planning, directing, and controlling the activities of an entity, typically including top-level managers and directors.

Disclosure Exemption

Situations under which a company is allowed not to disclose certain information that would normally be required by accounting standards.