Which of the Following Is True of Liability for Torts

question 12

Multiple Choice

Which of the following is true of liability for torts and crimes in corporations?

• A) If the employee commits a crime or tort while acting outside the scope of employment, the corporation is liable.
• B) If an employee commits a tort within the scope of employment but outside the office space, the corporation is not liable.
• C) When a corporate officer did not know of the employee's crime or tort, the officer is still liable.
• D) When a corporate officer could have prevented an employee's tort but did not, the officer may be liable.

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Definitions:

Shortage/Surplus

A surplus is the opposite of a shortage, occurring when the supply of a product or service exceeds its demand in a market.

Price Floor

A government- or authority-imposed minimum price set above the equilibrium price, preventing the market price from falling below a certain level.

Market Equilibrium

A situation in a market where the quantity supplied equals the quantity demanded at a certain price point.

Price Floor

A government or group-imposed price control or limit on how low a price can be charged for a product, service, or commodity, usually intended to ensure fair conditions for producers.