Circus Pizza Contracted with Art to Run Its Birthday Parties

question 19

Multiple Choice

Circus Pizza contracted with Art to run its birthday parties.Art's responsibilities included supervising the children and organizing the games.Circus did not investigate Art's background,which included a history of assaulting children.Art assaulted a 7-year-old girl in the restaurant's kitchen during a birthday party.Circus Pizza

• A)cannot be liable for the damages because Art committed an unforeseeable intentional tort.
• B)cannot be held liable for the damages because Art's conduct was not in the scope of employment.
• C)may be held liable on the basis of negligent hiring.
• D)may be held liable only if Circus actually knew of Art's background.

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Definitions:

Excess Reserves

Funds that banks hold over and above the regulatory requirement, which can influence the bank's ability to lend and the overall money supply.

Required Reserve Ratio

The fraction of deposits that banks are required to hold in reserve and not lend out, set by the central bank.

Required Reserves

This refers to the minimum amount of funds that a bank must hold in reserve against deposit liabilities, as mandated by central banking authorities.

Asymmetric Information

A situation in which one party in a transaction has more or superior information compared to another, potentially leading to an imbalance or unfair advantage.