Stark Excavating Was Replacing a Fire Hydrant

question 321

Multiple Choice

Stark Excavating was replacing a fire hydrant. OSHA inspector Armstrong came to the worksite and saw that the sides of the hole where the hydrant was being installed were too steep, so the dirt might collapse. Stark knew the sides were steep but wanted to do the work quickly so as to avoid disruption to local businesses. Armstrong issued a "willful violation" citation. Start appealed that the citation should not be of such a serious nature. The appeals court held that the citation would be:

• A) ​reduced to a lesser level because there was no injury on the worksite.
• B) ​reduced to a lesser level because while the sides of the hole were steep it was only three feet deep so injury was very unlikely to occur.
• C) ​eliminated because the inspector had no "conclusive evidence" that there could be harm, only speculation.
• D) ​eliminated as Stark had no record of prior violations and firms are given leniency in such instances.
• E) ​none of the other choices are correct.

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Definitions:

FIFO

"First-In, First-Out," an inventory valuation method where goods first purchased or produced are the first to be sold, affecting the cost of goods sold and ending inventory.

LIFO

An inventory valuation method called "Last In, First Out" where the most recently produced or purchased items are the first to be expensed as cost of goods sold.

Cordless Screwdrivers

Electric screwdrivers that operate without a direct power supply connection, using rechargeable batteries instead.

U.S.GAAP

A set of accounting standards and principles provided by the Financial Accounting Standards Board (FASB) for companies in the United States, ensuring transparency and consistency in financial reporting.