Mark Complied with All Formation Requirements for Incorporating His Taxicab

question 69

Essay

Mark complied with all formation requirements for incorporating his taxicab business. He is the sole shareholder in the corporation. The corporation owns two automobiles that Mark frequently uses for his own personal use. In addition, he sometimes deposits the money he takes in during the day into his personal checking account. One day, an employee of the company, while driving one of the company vehicles, accidentally hits a pedestrian in a crosswalk. The pedestrian sues both Mark and the taxi company for $100,000. The corporate assets are only $32,000. Is the corporation liable for the acts of its employee? Will Mark be personally liable under the facts? Explain.

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Definitions:

Labour Standards

refers to the set of regulations and criteria that determine the minimum safe and healthy conditions for workers in the workplace.

Historical Experience

The knowledge and insights gained from past events and activities, which can inform future decisions and strategies.

Time Study

A method used to determine the time required for an employee to complete a given job.

Sample Size

Denotes the number of subjects or units chosen from a population for the purpose of statistical analysis.