Carlos Has Been Sued for the Tort of Negligence While

question 23

Multiple Choice

Carlos has been sued for the tort of negligence while working at SKS Logistics.He failed to inspect his truck and missed seeing a failure in the brake line that caused him to get in an accident.Which of the following is true?

• A)SKS is not vicariously liable if it has liability insurance.
• B)The plaintiffs can sue SKS only if SKS specifically told Carlos not to check the brakes.
• C)SKS bears all of the risk and Carlos cannot be sued for acts performed on the job.
• D)Depending upon how SKS trained Carlos, it may be both vicariously liable and personally liable.
• E)Because of the need to hold companies responsible, the law prohibits SKS from acquiring liability insurance in connection with the risk of vicarious liability.

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Definitions:

Bowed Outward

Describes a production possibilities frontier that curves away from the origin, indicating increasing opportunity costs for producing goods.

Production Possibilities Frontier

A graphical representation that shows the maximum combination of goods and services that can be produced with a fixed amount of resources.

Rate Of Trade-off

The rate at which one factor must be decreased in order to increase another factor, commonly used in the context of opportunity cost.

Resources

Assets or inputs used in the production of goods and services, such as labor, capital, and natural resources.