Fact Pattern 47-1B

question 25

Multiple Choice

Fact Pattern 47-1B
Town Transport Company agrees to pick up two containers for Unlimited Sales, Inc., and store their contents, to be delivered later. While TTC un?loads one container, the other disappears from TTC's loading dock.
-Refer to Fact Pattern 47-1B. TTC can avoid liability

• A) by proof that TTC did not convert the goods and was not negligent.
• B) by proof that TTC's warehouse is located in a high-crime area.
• C) by proof that Unlimited Sales was negligent in hiring TTC.
• D) under any circumstances.

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Definitions:

Limited Liability Corporation

A commercial setup that blends the taxation approach of a partnership or sole proprietorship, where taxes pass directly to the owners, with the limited liability protection typical of a corporation.

Liability Purposes

Considerations or actions taken to minimize legal responsibility and financial risk within an organization or personal activities.

Corporation

A legal entity recognized by law as a separate entity from its owners, characterized by limited liability, perpetual succession, and the ability to raise capital through the issuance of shares.

Partnership

A business arrangement legally recognized, where two or more partners collaborate in managing the business and splitting the profits.