Which of the Following Rules Is Applicable to Determine the Liability

question 32

Multiple Choice

Which of the following rules is applicable to determine the liability of a corporation for any torts committed by its agents?

• A) Principle-agent relationship
• B) Joint and severally liable
• C) Strict liability
• D) Vicarious liability

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Definitions:

Substantial Entry Barriers

Significant obstacles that prevent or hinder new competitors from easily entering an industry or market.

Dominant Firms

Companies that possess a major share of the market and typically have considerable power to influence market conditions and prices.

Low Entry Barriers

Characteristics of a market or industry that make it easy for new companies to start operations and compete.

Homogeneous Oligopoly

A market structure characterized by a few firms producing identical or very similar products, leading to significant inter-firm competition.