The Employment Exception to the Privity Doctrine

question 47

Multiple Choice

The employment exception to the privity doctrine

• A)was created by statute.
• B)allows an employer to acquire rights in a contract that was created between a customer and an employee.
• C)may be applied in a case that involves vicarious performance.
• D)is usually necessary because the employer did not provide consideration to the customer.
• E)is a form of equitable assignment.

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Definitions:

Residual Value

The estimated worth or salvage value of an asset at the end of its useful life.

Net Income

The total profit of a company after all expenses, including taxes and operational expenses, have been deducted from total revenue; essentially, it's the bottom line of the income statement.

Average Rate

A term often used in finance to describe the mean rate of return or the mean rate of interest over a specified period.

Fixed Asset

Fixed asset, also known as a non-current asset, is a long-term tangible piece of property or equipment that a firm owns and uses in its operations to generate income.