Fact Pattern 39-1A (Questions A3-A4 Apply)

question 19

Multiple Choice

Fact Pattern 39-1A (Questions A3-A4 apply)
Mountaintop Clearview Corporation authorizes Niles,its employee,to oversee its timber operation.In the course of his employment,Niles disposes of the operation's waste illegally.Orson is a Mountaintop shareholder.
-Refer to Fact Pattern 39-1A.Liability for Niles's act most likely rests with Orson to

• A)no extent.
• B)the proportionate extent of the number of shares Orson owns.
• C)the amount of Orson's investment in the firm.
• D)the full extent.

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Definitions:

Voidable

A term referring to a contract or transaction that is valid and enforceable but may be declared void by one party due to certain defects.

Minor

An individual under the age of legal adulthood, typically under 18, and thus is limited in their legal capacity to make certain types of decisions or enter into contracts.

Irrevocable

Something that cannot be changed, reversed, or taken back once it has been established or done.

Grantor

The individual or entity that establishes a trust, transfers property, or conveys rights to another person or entity.