With the Exception of Malpractice, Liability for Torts Committed by Others

question 62

Multiple Choice

With the exception of malpractice, liability for torts committed by others in a firm cannot be imposed on the shareholders of

• A)a professional corporation.
• B)a benefit corporation.
• C)a close corporation.
• D)any corporation.

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Definitions:

Wrongfully Dishonors

The unjustified refusal to accept or pay a financial instrument, such as a check, when it is presented for payment.

Resulting Damages

Financial losses or harm that occur as a direct consequence of an action or event.

Forced Indorsement

A signature placed on a negotiable instrument, such as a check, without the consent of the party whose name is signed.

Holder

An individual or entity that legally possesses a document, such as a check or promissory note, and has the right to enforce it.