The Ozark Carnival Corp (OCC)owns a Traveling Fairground That It

question 59

Essay

The Ozark Carnival Corp (OCC)owns a traveling fairground that it operates in shopping mall parking lots.It hired Cletus to run "The Splasher," which is one of its amusement rides.It provided Cletus with the most extensive training possible.Nevertheless,while operating The Splasher,Cletus carelessly failed to fasten the safety harness on Celia,a five-year-old passenger.Celia was thrown from the ride and suffered serious injuries.Cletus has admitted liability in negligence.Unfortunately,he has no money with which to pay Celia's damages.The court also held OCC vicariously liable for Celia's injuries.Identify and briefly explain three possible justifications for the doctrine of vicarious liability.

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Definitions:

Useful Life

The estimated period over which an asset is expected to be usable for its intended purpose, affecting depreciation calculations and capital budgeting.

Preventive Maintenance

The routine maintenance and care of equipment and facilities to prevent unplanned downtime and costly repairs by addressing potential issues before they become major problems.

Service Hours

A measure of activity based on the number of hours of service provided, often used in calculating billing or costs in service industries.

Value-Based Pricing

A strategy of setting product prices based on the perceived value to the customer rather than the product's cost or market competition.