[Furniture Store Woes] Connor Was Hired by Jun to Deliver

question 68

Multiple Choice

[Furniture Store Woes] Connor was hired by Jun to deliver furniture purchased from Jun's furniture store, Good Furniture. Jun had authorized Connor to drive the delivery truck home from work, but Connor was not authorized to use the truck for any personal errands. Connor decided to help his friend Adriana move, believing that Jun would never find out. Unfortunately, while moving Adriana's furniture to her new home, Connor was speeding and hit Tomás's vehicle in the rear, causing whiplash to Tomás. Tomás is threatening to sue both Jun and Connor. Then, on his way to work in the same truck the next day, Connor again bumped a car, driven by Gina, who is also threatening to sue both Connor and Jun. Jun also has another problem involving Hae, his niece, an aspiring interior designer who Jun hired to provide design services to customers. Both Hae and Jun were aware that customers would likely have no interest in the services of Hae if they knew she had no experience and no training in design. Therefore, they inflated her accomplishments to customers, telling them that she had both training and experience. In reliance on those claims, Beth agreed to have Hae do the interior design work for her new business building while Beth was out of town on an extended business trip. Unfortunately, Hae did a terrible job. Beth was outraged when she returned. She found out from Destiny, a disgruntled employee of Jun, that Hae actually had no training or experience in interior design. Beth wants to sue both Hae and jun.
-Which of the following is true regarding Jun's liability to Tomás?

• A) Jun will likely be held liable for Tomás's injuries because while Connor was acting outside the scope of his duties at the time of the accident, he had not substantially departed from the course of his employer's business.
• B) Jun will likely be held liable for Tomás's injuries because Connor was driving Jun's truck at the time of the accident.
• C) Jun will likely be held liable for Tomás's injuries because Jun allowed Connor to take the truck home regardless of Jun's instructions regarding the use of the truck.
• D) It is unlikely that Jun will be held liable for Tomás's injuries because Connor had substantially departed from the course of his employer's business.
• E) It is unlikely that Jun will be held liable for Tomás's injuries unless it can be proven that Connor had no insurance and lacks the ability to pay.

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Definitions:

Real Output

The measure of goods and services produced by an economy, adjusted for inflation or deflation, showing true growth or contraction.

Price Level

The average of current prices across the entire spectrum of goods and services produced in the economy, an indicator of inflation or deflation.

Policy Credibility

Describes the degree to which economic agents trust and believe in the effectiveness of a government's economic policies, influencing the policies' success.

Time-inconsistency

A situation where a decision-maker's preferences change over time, leading to a plan or policy that is not followed through as initially intended.