The Provincial Government Thought That the Only Way to Make

question 113

Multiple Choice

The provincial government thought that the only way to make businesses competitive with those from other countries was to make more information available to them about market conditions, currencies, etc., around the world. It began a program of incentives that included a government office that would give people not only the business information but also advice on how the businesses could link up to the government's database that held the updated information. Mr. Su relied on some information given to him by Alex Chec, an employee of the government. The information was wrong due to a mistake made by an operator entering data. It was Mr. Chec's job to cross-check that information before it was released to the public. He forgot to do it. Mr. Su suffered a $100,000 loss because of the error. Which of the following is true?

• A) If Mr. Su sues the government on the principle of vicarious liability, he cannot also sue the employee, or employees, at fault.
• B) Mr. Su could not take any action because he suffered no physical injury. The case only deals with information.
• C) The court must find only one party liable and that party must pay for all of the damages.
• D) Mr. Su could not take any action because he had not entered into a contract with the government for this information.
• E) The operator may be found liable for negligence if Su, the plaintiff, can prove, among other things, that he owed him a duty of care.

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Definitions:

Accounts Receivable

The amounts owed to a business by its customers for goods or services delivered on credit.

Budgeted Sales

The projected amount of sales revenue a company expects to earn over a specific period, based on historical data, market analysis, and estimated growth rates.

Cash Collected

The total amount of cash received by a business during a specific period, including revenues and other income streams.

Credit Sales

transactions where goods or services are sold to a customer with payment to be received at a later date.