Gig Shipping, Which Is Based in Winnipeg, Offered to Deliver

question 55

Multiple Choice

Gig Shipping, which is based in Winnipeg, offered to deliver "anything, anywhere anytime." Rosie entered into a contract with Gig Shipping to send an antique phonograph from Portage La Prairie to Brockville.The phonograph was lost in transit.Rosie claimed the value of the phonograph under a policy that she had purchased from The Pas Insurance Co.Despite the loss, Gig Shipping feels protected from the effects of liability by a policy that it purchased from Brandon Insurance Co.Which of the following statements is most likely TRUE?

• A)Gig Shipping can be held liable only if it deliberately or carelessly damages the phonograph.
• B)If one insurance company is compelled to pay a benefit, the other could not possibly be compelled to pay a benefit.
• C)The Pas Insurance Company sold a first part insurance policy.
• D)Gig Shipping acted as a bailor.
• E)Rosie purchased a third party insurance policy.

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Definitions:

Dilutive Potential

The possibility that the issuance of additional securities could decrease earnings per share or decrease an ownership interest.

After-tax Effect

The impact of taxes on a company's financial transactions, typically focusing on the net result after accounting for the taxation impact.

Accounting Policies

The distinct protocols, core principles, guidelines, directives, and procedures followed by a company for the preparation and presentation of its financial reports.

Retrospective Adjustment

An adjustment applied to the financial statements of prior periods to correct an error or to reflect a change in accounting policy as if that policy had always been applied.