An Employee from Hamid's Automobile Inc

question 15

Multiple Choice

An employee from Hamid's Automobile Inc. called up Horner's home to repair the latter's car. It was repaired in Horner's garage. When Horner defaulted on the bill, Hamid's employee went to his house to take possession of the car, claiming that the corporation had a lien on the car by virtue of the work performed on it. According to this scenario, which of the following statements is true?

• A) The employee is entitled to the possession of the car because he was the one who performed the repairs on the car.
• B) Hamid's employee is justified in his actions as the corporation did have a lien on the car by virtue of the work performed on it by its employee.
• C) The corporation has no lien on the car because the employee did not notify Horner at the time of the repairs that a lien would be claimed.
• D) The corporation has no lien on the car, because its employee came to Horner's house to make the repairs and so Horner never gave up possession of his car to Hamid's.

---

Definitions:

Oil Lubricants

Substances applied to reduce friction and wear between surfaces in mutual contact, which ultimately extends the life of machinery.

Factory Plant

A facility where industrial or manufacturing processes occur, often including buildings and machinery.

Factory Overhead

Costs incurred in the production process that cannot be directly linked to specific products, such as maintenance, utilities, and salaried personnel.

Product Cost

An aggregate measure of the total costs involved in creating a product, including direct, indirect, and overhead costs.