In USVLaGrou Distribution Systems,the Defendant Company Suffered from an Extremely Serious

question 2

Multiple Choice

In U.S.v.LaGrou Distribution Systems,the defendant company suffered from an extremely serious rat infestation.Stewart,the president of LaGrou defended saying he had no specific knowledge of meat contamination so he was not culpable.

• A) Stewart was found guilty because he knew of the rat problem and didn't do all that could be done to control the problem
• B) Stewart was found not guilty because he recognized the problem and instructed employees to work daily to control the problem
• C) Stewart was found guilty because even though his subordinates hid the problem from him, they did so in the normal course of business making senior management liable
• D) Stewart was found not guilty because the court recognized that when 20 million pounds of meat are stored in a facility, it is impossible to control rats that target the meat

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Definitions:

Total Revenue

The total amount of money a firm receives by selling goods or services, calculated as the unit price times the quantity sold.

Maximizing Profits

The process or strategy of adjusting the production and sale of goods and services to achieve the highest possible profit.

Fixed Costs

Costs that do not change with the level of output produced, such as rent, salaries, or insurance expenses.

Maximizing Profits

The process of increasing the difference between revenue and costs to achieve the highest possible financial gain.