Gary Hires Doug to Burn Off His Fields to Kill

question 56

Multiple Choice

Gary hires Doug to burn off his fields to kill the weeds. If the fire gets out of control because of Doug's negligence and the fire damages Philip's wood fence:

• A) Gary has no liability because Doug was an independent contractor.
• B) Doug bears sole responsibility for damage to the fence because it was his negligence that caused the fire to escape the intended boundaries.
• C) Gary is vicariously liable because he authorized an abnormally dangerous activity.
• D) Philip cannot hold Gary liable unless Gary was personally involved in the act of burning the fields.

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Definitions:

Cost Flow Assumption

An accounting method used to determine the cost of goods sold and ending inventory, such as FIFO, LIFO, or average cost.

Periodic

An accounting system where inventory and cost of goods sold are determined at the end of an accounting period, rather than tracked continuously.

Perpetual

A method of inventory management where updates are made continuously to reflect sales and purchases.

Merchandise Sold

This term refers to products that have been sold and are in the process of being delivered to the customer, usually recognized as revenue in retail or wholesale businesses.