A and B Entered a Variety Store Owned ByC

question 41

True/False

A and B entered a variety store owned byC. A purchased two chocolate bars from C, and gave one toB. Unknown to A, B, or C the chocolate bar which A gave to B contained a piece of metal that had fallen into the chocolate mix when the candy bar was made. When B attempted to eat the chocolate, she damaged one of her teeth. She was obliged to have the tooth repaired by a dentist, and in addition, lost a day's work because of the painful injury to her mouth. Her total loss amounted to $300.00.
B may take legal action against A, since it was A who gave her the chocolate bar.

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Definitions:

Retained Earnings

Profits that a company has earned to date, less any dividends or other distributions paid to shareholders, often reinvested back into the company.

Share Capital

The funds raised by a company through the issuance of shares, representing the ownership of the company.

Cumulative Preferred Shares

Preferred stock where dividends accumulate if not paid in a given period and must be paid out before any dividends can be paid to common stockholders.

Dividends in Arrears

Unpaid dividends on cumulative preferred stock that must be paid before any dividends can be paid to common shareholders.