Which of the Following Is False Regarding the Relationship Between

question 39

Multiple Choice

Which of the following is false regarding the relationship between a principal and an independent contractor?

• A) An independent contractor is not an employee of the principal.
• B) The principal does not control the details of the independent contractor's performance.
• C) An individual who hires an independent contractor cannot be held liable for the independent contractor's tortious actions under the doctrine of respondeat superior.
• D) A principal is not liable for extremely dangerous actions engaged in by the independent contractor.
• E) If an independent contractor commits a crime without the authorization of the principal, the principal is not liable for the agent's crime.

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Definitions:

Reservation Prices

The maximum price a buyer is willing to pay for a good or service or the minimum price a seller is willing to accept.

Bundling

The practice of selling two or more products or services together as a single package, often at a discounted rate.

All-you-can-eat Salad Bar

A service model in restaurants where customers pay a fixed price to consume as much salad as they wish from a variety of options.

Price Discrimination

The strategy of selling the same product to different customers at different prices based on willingness to pay.