Which of the Following Is True Regarding the Rights of an Employer

question 28

Multiple Choice

Which of the following is true regarding the rights of an employer who is held liable and pays a third party, not because of the employer's negligence, but under the doctrine of respondeat superior based upon negligence of an employee?

• A) The employer has no right to receive any reimbursement from the negligent employee.
• B) The employer has a right to recover only 50% of any amounts paid from a negligent employee.
• C) The employer has a right to recover all amounts paid from the negligent employee.
• D) The employer can recover all amounts paid from a negligent employee but only if it can be shown that the employee's negligence was based upon the violation of a statute.
• E) The employer can recover 50% of any amounts paid from a negligent employee but only if it can be shown that the employee's negligence was based upon the violation of a statute.

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Definitions:

Total Assets

The sum of all assets owned by a company, including both current and non-current assets.

Par Value

The nominal or face value of a stock or bond, representing the minimum amount set by the issuing company.

State Government

The organization through which political authority is exercised at the state level, governing over a specific geographical area.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often entitling shareholders to fixed dividends ahead of common shareholders.