Carten Printing Receives an Unexpectedly Large Order for Shipping Envelopes

question 16

Multiple Choice

Carten Printing receives an unexpectedly large order for shipping envelopes from one of its regular clients, a major Canadian CD-ROM retailer. In order to meet the order delivery date, Carten farms out part of the printing to another firm, Serger Printing. Serger, in an attempt to raise its own profit margin on the deal, uses lower grade adhesive and cuts corners on printing quality. The faulty shipping envelopes show up as returns made to the retailer from dissatisfied customers. The retailer takes action against Carten for damages. What is the most likely outcome?

• A) The retailer will not succeed against Carten but will have a right of recovery against Serger.
• B) The retailer will succeed against Carten, and Carten will have no right of recovery against Serger.
• C) a novation.
• D) The retailer will succeed against Carten, and Carten will have a similar right of recovery against Serger.
• E) The retailer will have a right of recovery against both Carten and Serger.

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Definitions:

Tajfel's Theory

This social psychology theory posits that group membership creates in-group/self-categorization and enhancement in ways that favor the in-group at the expense of the out-group.

Award Money

Financial compensation given as a reward for excellence, achievement, or winning in various contexts such as contests, competitions, or incentives.

Social Loafing

Social loafing refers to the phenomenon where individuals exert less effort when working in a group than when working alone.

Exert Less Effort

The phenomenon where individuals decrease the amount of physical or mental energy put into tasks, often observed when they perceive less reward or recognition.