MsReed Attended the Zoning Offices of the City

question 41

Multiple Choice

Ms.Reed attended the zoning offices of the city.She explained to the chief zoning officer,Mr.Shore,that she was interested in a piece of property,but only if it were zoned "multiple family dwelling." Mr.Shore checked the property himself and assured her it was zoned "multiple family dwelling," but he had not checked the new regulations properly.Relying on his statement,Reed invested $300 000 in the purchase and the development of the property.When the apartment building was half finished,she was informed by the city that her building was unacceptable because the property was zoned "duplex." Upon hearing this news,she rushed to the city zoning offices and approached Mr.Shore,started yelling,and threw her briefcase at him.He ducked; she missed.When she persisted in yelling,he threw some cold water in her face.On these facts,which of the following is true?

• A) Reed could successfully sue Shore for defamation.
• B) Shore could successfully sue Reed for assault.
• C) Reed could successfully sue the city for negligence.
• D) Reed could successfully sue Shore for assault and battery.
• E) Reed could not sue Shore for saying the property was zoned "multiple family dwelling" because he did not intend to make the error; it was just a mistake.

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Definitions:

Direct Labor Hours

The total hours worked directly on a product or service by employees in the production process.

Overhead Rate

A measure used to allocate overhead costs to produced goods, calculated by dividing total overheads by an allocation base, such as labor hours.

Departmental Overhead Rates

Specific rates used to allocate overhead costs to different departments within a company based on varying criteria.

Machine Hours

represent a measure of the amount of time a machine is in operation, used in costing to allocate expenses based on the use of machinery.