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 perfor…
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