Joe Entered a Store and Approached a Display of China

question 102

Multiple Choice

Joe entered a store and approached a display of china.He was examining an extremely valuable vase and carelessly dropped it,destroying it.Which of the following is correct with respect to his liability?

• A) If the store has insurance coverage, the insurance will cover his careless conduct and he doesn't have to worry about anything.
• B) If the store has insurance coverage, the insurance will pay the store for the loss but can go after Joe for repayment by suing him for negligence.
• C) Joe cannot be sued for the loss because Joe is not a party to the insurance contract.
• D) If the store does not have insurance coverage, they should have and so Joe has no responsibility in these circumstances.
• E) Joe is responsible only if the store has no insurance coverage.

---

Definitions:

Wage and Tax Statement

A document provided by employers to employees detailing the employee's earnings and taxes withheld during the year; commonly referred to as a W-2 form.

Employee's Earnings Record

A detailed record maintained by employers that tracks the wages or salaries earned by each employee over time, including taxes and deductions.

Payroll Register

A document listing each employee’s pay details for each payroll period, including wages, deductions, and net pay.

FICA Tax

Federal Insurance Contributions Act tax; a U.S. federal payroll tax that funds Social Security and Medicare.