A Cattle Rancher and a Wheat Farmer Own Adjacent Properties

question 70

Multiple Choice

A cattle rancher and a wheat farmer own adjacent properties that may or may not be separated by a fence. The accompanying table identifies the annual profit received by each party in the event there is, or there is not, a fence. If there is no fence, one can be installed and maintained at an annual cost of $25,000. $\begin{array}{lll}&\text { Fence }&\text {no Fence }\\\text { Cattle Rancher } & \$ 40,000 & \$ 50,000 \\\text { Wheat Farmer } & \$ 50,000 & \$ 20,000\end{array}$ If legal rights are assigned to the wheat farmer so that the cattle rancher is liable for any damage caused by his cattle to the wheat crop, then the:

• A) rancher will choose to close his ranch.
• B) farmer will not allow the rancher to stay in business.
• C) rancher will pay to build the fence.
• D) rancher will choose to compensate the farmer for damages.
• E) rancher will be indifferent toward neither building the fence nor compensating the farmer for damages.

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Definitions:

ERP Implemented

The process of planning, configuring, and deploying Enterprise Resource Planning software to integrate and manage the core processes of an organization.

Interorganizational

Pertaining to interactions or relationships between different organizations.

ERP System

Enterprise Resource Planning system, a software platform used by organizations to manage day-to-day business activities such as accounting, procurement, project management, and manufacturing.

FAIS

The Financial Advisory and Intermediary Services Act, a regulation aiming to protect consumers by regulating financial service providers in certain jurisdictions.