[Daria's Bakery] Daria Decided to Open Her Own Bakery

question 19

Multiple Choice

[Daria's Bakery] Daria decided to open her own bakery. She decided she did not need a lawyer to advise her on different forms of ownership. Unfortunately, Daria had not paid attention in business law class. She proceeded to simply open her business called Daria's Bakery. Eli told Daria that he wanted to order some cookies for his girlfriend, Kirsten, but that Kirsten had allergies to peanuts. Daria told him not to worry because she would make up a special batch just for him. Daria had hired some assistants because she was so busy. She told an assistant, Kate, to make up several batches of cookies for different customers including Eli and told her to leave out the peanuts in Eli's batch because of the allergy. Kate, however, forgot about the peanut allergy and proceeded to make Eli's cookies with peanuts. Eli picked up the cookies and gave one to Kirsten in the car. Kirsten became violently ill, vomited in Eli's car, and had to have her stomach pumped. Eli and Kirsten sought recovery from Daria who told them that Kirsten's doctor bill and Eli's car cleaning bill were business debts, that the business was new and not making any money at the moment, and that she had no personal liability. Following the incident involving Eli and Kirsten, Daria discussed her problems with the bakery with her parents. Daria's parents would like to invest in her business and share in any profits, but they do not want to share in the management responsibilities.
-Which of the following is a true statement regarding Daria's statement that she had no personal liability?

• A) She was correct.
• B) She was correct only if she can establish that she has paid all her business taxes on time.
• C) She was correct only if she can establish that she has at least 5 employees.
• D) She was incorrect.
• E) She was incorrect unless she signed an agreement with a financial institution in order to get a loan for the business and agreed in the document that she would not accept personal liability for any losses.

---

Definitions:

Circular Chromosome

A type of chromosome that is formed in a circular shape, commonly found in bacteria and some archaea.

Mitochondria

Organelles within cells that are responsible for producing energy through the process of oxidative phosphorylation.

Cyanobacteria

Photosynthetic, aquatic microorganisms, also known as blue-green algae, that can produce oxygen during photosynthesis and contribute to the formation of stromatolites.

Lichens

Symbiotic organisms composed of fungi and algae or cyanobacteria, where the fungi provide structure and the algae or bacteria provide photosynthesis.