In USVLaGrou Distribution Systems,the Defendant-Company Suffered from an Extremely Serious Rat

question 52

Multiple Choice

In U.S.v.LaGrou Distribution Systems,the defendant-company suffered from an extremely serious rat infestation.Stewart,the president of LaGrou,defended,saying he had no specific knowledge of meat contamination and therefore he was not culpable.Which of the following was the result?

• A) Stewart was found guilty because he knew of the rat problem and did not do all that could be done to control the problem.
• B) Stewart was found not guilty because he recognized the problem and instructed employees to work daily to control the problem.
• C) Stewart was found guilty because even though his subordinates hid the problem from him, they did so in the normal course of business, thus making senior management liable.
• D) Stewart was found not guilty because the court recognized that when 20 million pounds of meat are stored in a facility, it is impossible to control rats that target the meat.

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Definitions:

Service Business

A type of business that provides intangible products, such as expertise, time, or activities, to customers rather than physical goods.

Manufacturing Business

A company engaged in the production of goods by processing raw materials into finished products.

Merchandising Business

A type of business that purchases goods for resale to customers, making profits from the markup over the cost of goods sold.

Limited Liability Company

An organizational form blending the direct tax system of a sole proprietorship or partnership with the reduced liability features of a corporation.