Consistent with Common Practice, the Lifeguard at a Hotel Pool

question 67

True/False

Consistent with common practice, the lifeguard at a hotel pool periodically adds chlorine to the water to ensure clean and healthful conditions. One afternoon, after adding the appropriate dosage, the lifeguard failed to return the chlorine to its normal storage place and instead left it near the base of the guard chair. Unknown to the lifeguard, a young swimmer saw the chlorine, drank some, and became very ill. True or false: The hotel will be liable for the injuries.

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Definitions:

Fixed Costs

Costs that do not fluctuate with changes in production level or sales volume, such as rent, salaries, and insurance.