Question 1 Connie, the president of a company that makes paper,      has a new interest in the environment. She recently went to a seminar on      environmental dangers and has decided to take steps to clean things up.      She started at home and was also committed to change things at work.      Connie had to face the fact that her company has been cheating and is not      in compliance with applicable environmental regulations due to dumping in      a nearby river. Her company has never been cited, however, because it employs      a very large number of people in the community, including the mayor’s wife      and the chief-of-police’s brother. On her mission to clean things up, Connie has decided to go even further      than the law requires and install the very latest environmental protections.      When she announced her plan, the chair of the company’s board of      directors, Brooke, had a meeting with Connie. Brooke told Connie to      analyze the situation carefully because the cost of the additional      equipment would mean no dividend to shareholders and no raise for      employees. Furthermore, Brooke told Connie that installing all of the new      equipment would result in higher prices for the company’s paper products      and could bankrupt the company because of foreign competition. Brooke      hinted that Connie could be fired if she persisted. Brooke suggested that      Connie just be concerned with a minimal standard of ethics. Which of the      following would be a stakeholder in the company? The community only The shareholders only Future generations only The community and shareholders   only The community, shareholders, and   future generations 2 points Question 2 Which of the following is TRUE regarding the liability      in tort of employers for the actions of employees and independent      contractors? Employers are generally liable in   tort for the actions of their employees, while they are generally not liable   for the actions of independent contractors. Employers are generally liable in   tort for the actions of independent contractors, while they are generally not   liable for the actions of employees. Employers are not generally liable   in tort for the actions of independent contractors or for the actions of   employees. Employers are generally liable in   tort for the actions of independent contractors and also for the actions of   employees. Employers are generally liable in   tort for the actions of independent contractors and the actions of employees,   but only if the employer has agreed to be liable in a written contract with   the employee or independent contractor. 2 points Question 3 Which of the following was the result on appeal in the      case of Webster v. Blue Ship Tea Room Inc .—the case in which the      plaintiff sued after getting a bone caught in her throat while eating clam      chowder? That the plaintiff could recover   based upon the implied warranty of merchantability That the plaintiff could recover   based upon the implied warranty of fitness for a particular purpose That the plaintiff could recover   based on an express warranty That the plaintiff could not   recover because she waited too long in which to sue and also because she was   not the direct purchaser of the fish That the plaintiff could not   recover for reasons including that the bone should not have been unexpected 2 points Question 4 A partnership in which the partners divide      profits and management responsibilities and share unlimited personal      liability for the partnership’s debt is called a __________. general partnership limited partnership limited liability partnership corporation limited liability company 2 points Question 5 A person who contracts with another to do something for      him or her but who is not controlled by the other nor subject to the      other’s right to control with respect to his or her physical conduct in      the performance of the undertaking is a(n) _…

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