Cameron,editor of the Local Newspaper,assigned to Jim the Writing of a Story

question 5

Multiple Choice

Cameron,editor of the local newspaper,assigned to Jim the writing of a story about pollution of a nearby stream.Although Jim used reasonable care in gathering and checking his information,unknown to Jim,the story contained a defamatory statement about Maureen.Maureen reads the story and sues Jim for libel.Cameron,who read and published the story

• A)must indemnify Jim for Maureen's claim.
• B)need not indemnify Jim for Maureen's claim because Jim should have checked his facts more carefully.
• C)need not indemnify Jim for Maureen's claim because Jim breached his duty to obey instructions.
• D)can recover damages from Jim for any injury to the newspaper resulting from Jim's story.

---

Definitions:

Expense Incurred

Costs that have been incurred by a business in the process of earning revenue, often recognized in the accounting period when they are incurred, regardless of when payment is made.

Asset Decrease

A reduction in the value or amount of the assets owned by an organization.

Liability Increase

An augmentation in the current obligations that a company owes, which may include loans, accounts payable, mortgages, deferred revenues, or other debts.

Cost Of Assets Consumed

Expenses associated with the using up of assets resulting from operational activities.