Mike Worked for Frank's Pizza as a Driver and Was

question 25

Multiple Choice

Mike worked for Frank's Pizza as a driver and was an agent.His duties consisted of making deliveries along a designated route.One day Mike decided to see his girlfriend,Jackie,who lived 50 miles off his pizza route.While driving to his girlfriend's,Mike injured a pedestrian,Chuck.The accident was caused by Mike's negligent driving.Chuck is now suing both Mike and Frank's for personal injuries.Under the circumstances

• A) Frank's is liable under the doctrine of respondeat superior.
• B) Frank's is never liable for the negligent torts of its agents.
• C) Chuck can recover damages from both Frank's and Mike.
• D) Frank's is not liable because Mike was on a frolic of his own.

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Definitions:

Jensen Measure

A performance metric that evaluates a portfolio manager's ability to generate excess returns relative to a benchmark, adjusting for risk.

Risk-Free Return

The return on an investment with zero risk, typically associated with U.S. Treasury securities.

Treynor's Measure

A performance metric for determining how well an investment compensates the investor for taking a risk, considering the risk-free rate.

Risk-Free Return

The theoretical return on an investment with no risk of financial loss.