Bob Owns a Small Carpet Company

question 88

True/False

Bob owns a small carpet company.After a dispute,his best salesman left the company and was hired by a competitor.A client who recently had carpet installed by Bob's company has initiated legal action on the basis of a statement made to him by the former salesman,who told the client that he had received a product of inferior quality.The former employee made the statement in good faith.The former employee has committed a slanderous act that is an intentional tort.

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Definitions:

Regulatory Controls

Mechanisms put in place by a government or regulatory body to manage operations and behaviors within industries to ensure compliance with legal standards and to protect public interest.

Unlimited Liability

A legal obligation in business where owners are personally responsible for all debts of the business, extending to their personal assets.