Fact Pattern 48-1​ Truck & Transfer Inc. Agrees to Pick Up Two Containers

question 21

Multiple Choice

Fact Pattern 48-1​
Truck & Transfer Inc. agrees to pick up two containers for United Home Products Corporation and store their contents, to be delivered later. While Truck & Transfer unloads one container, the other disappears from the company's loading dock.
-Refer to Fact Pattern 48-1. Truck & Transfer can avoid liability​

• A) ​by proof that Truck & Transfer was not negligent.
• B) ​by proof that Truck & Transfer's loading dock is in a high-crime area.
• C) ​by proof that United Home was negligent in hiring TTC.
• D) ​under any circumstances.

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Definitions:

Lockbox System

A service provided by banks to companies for receiving payments from customers; payments are sent to a post office box and then quickly processed by the bank.

Money Market Securities

Money Market Securities are short-term debt instruments that are highly liquid and considered safe, such as Treasury bills, certificates of deposit, and commercial paper.

Collection Time

The average period it takes for a business to receive payments owed by its customers, reflecting the effectiveness of its credit and collection policies.

Average Daily Receipts

The average amount of money received by a business per day over a specific period, often used in financial analysis.