Ocala Corp Operated a Factory That Caused Corrosive Particles to Drift

question 19

True/False

Ocala Corp operated a factory that caused corrosive particles to drift in the air and land on a building that was owned by Broderick Inc.Those particles damaged the roof of the building.The damage could have been repaired immediately at a cost of $250 000, but Broderick did not have the money necessary to do so.It therefore sued Ocala in negligence.By the time the trial ended several years later, inflation had run rampant and the cost of repairing Broderick's roof has increased to $900 000.Because of the modern approach to the "thin wallet" rule, Ocala cannot possibly be held liable for more than $250 000.

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Definitions:

Articles of Partnership

Articles of Partnership is a document that outlines the terms, conditions, and responsibilities of each partner in a partnership.

Annual Salary

The total amount of money an employee earns in a year before deductions for taxes and other items.

Capital Balance

The amount of money that an individual or entity has contributed towards the capital of a company, often reflected in the equity section of a balance sheet.

Net Loss

Occurs when a company's total expenses exceed its total revenues during a specific period, resulting in a negative profit.