Kent Incorporated Dynamite Data Ltd

question 169

Multiple Choice

Kent incorporated Dynamite Data Ltd.,which worked with small businesses in developing graphs and charts from their data for presentations to bankers,shareholders,etc.Kent loaned the company $25 000 by way of a shareholder's loan and took as security computers,plotters,and printers under a chattel mortgage document.An employee of the corporation,Jack,while delivering some graphs to a customer,Roth,got into an argument with Roth,who complained that the graph was in red and not in pink as requested.It ended with Jack punching Roth,who fell onto a microscopic camera.The damage to Roth's nose and the camera totalled $35 000.Which of the following is true?

• A)The corporation is not liable for the damage caused by the action of its employee,Jack.
• B)If the corporation went bankrupt but owed creditors (other than Roth),Kent would be in a worse position than unsecured creditors to collect proceeds realized from the sale of the corporation's assets.
• C)Kent is liable for the damage to Roth and the camera if neither Jack nor the employer/corporation has sufficient funds.
• D)Roth's action against Jack is for the tort of assault.
• E)Even if Kent,the only shareholder,died,the corporation would not die and would still owe its outstanding debts.

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Definitions:

Distributors

Entities engaged in the business of distributing goods, typically bought from manufacturers, directly to retailers or customers.

Supply Chain

The entire process of making and selling commercial goods, including raw materials sourcing, manufacturing, distribution, and sales.

Small Players

Companies or entities that have a minor share in a market or industry, typically characterized by smaller teams, budgets, or influence.

Response Time

The duration between when a request is made and when the response is received.