In: Operations Management
20. Eva is a beer truck driver for the a local brewery. Her beer run takes her from Philadelphia to Glassboro every day. The brewer has given Eva a very precise route. On a Friday morning, Eva’s boyfriend calls and asks her to take the beer truck and meet him in Atlantic City for a day of gambling. Eva says she can only spend six hours in Atlantic City. During that time, she will gamble, get a manicure and pedicure, and have a steak dinner. She plans to finish her deliveries afterwards. She drives the beer truck to Atlantic City, and while searching for a parking space in a casino parking lot, Eva accidentally rear ends a convertible driven by a Thai heiress, who has been travelled in the United States with her pet tiger. The heiress wants to sue Eva and the beer company for negligence. Will the heiress be successful in suing Eva and the beer company?
a. She will prevail against neither.
b. She will prevail against both.
c. She will prevail against Eva but not against the brewery.
d. She will prevail against the brewery, but she won’t prevail against the brewery.
21. The Thai heiress has a sign on her convertible warning people not to approach because of the dangerous tiger lurking unseen behind her tinted windows. Eva has a license to own the tiger. The tiger has graduated tiger obedience school and has all his shots and circus certifications. The tiger is muzzled and held in her car by steel chains. He is an extremely friendly tiger. When Eva approaches the heiress to apologize, the tiger, having been startled by the accident, breaks its muzzle and chain and bite’s Eva’s arm off. Eva wants to sue the heiress under tort law. Will Eva win?
a. Yes, the heiress was negligent.
b. No, the heiress met her duty of care and could not foresee that the tiger would break its muzzle and chain.
c. Yes, Eva will win under strict liability
d. Yes, the heiress committed an intentional tort of battery.
23. In November, a billionaire Norwegian prince proposes to Shelly and buys her a cottage in Oslo as well as a Ferrari and a stable of fine horses and cows. She contacts Barbara and tells her that she cannot perform the remainder of the contract, but offers to write five songs for Barbara if Barbara will agree to relieve Shelly of her obligations under the original contract. Barbara accepts. What is this subsequent agreement called? __________________________________
26. Which of the following are reasons why an employer would prefer to hire Maxie as an independent contractor rather than as an employee?
a. to save employer’s contribution to Maxie’s Social Security taxes
b. to prevent the employer from being held liable for Maxie’s negligence
c. to prevent paying for worker’s compensation insurance for Maxie
d. all of the above
20. Answer: c. She will prevail against Eva but not against the brewery.
Explanation:
An employer is liable for the harm committed by the employees acting within the scope of their employment based on the doctrine of respondeat superior. Here the brewery would be liable if Eva made the accident while acting within the scope of employment. But the accident happened in Atlantic City when she went for gambling with her boyfriend and she was not acting within the scope of her employment. Hence only Eva would be liable here for the injuries and the beer company cannot be held liable.
21.Answer: c. Yes, Eva will win under strict liability
Explanation:
Strict liability is liability without fault and it applies in case of unreasonably dangerous activities. It is extremely dangerous to keep wild animals and the persons who keep wild animals are strictly liable for the harm done by the wild animal. Hence the Thai waitress is liable for the harm done by the tiger to Eva and Eva will win under strict liability.
23. Answer: Accord
Explanation:
The agreement to perform some act to satisfy an existing contractual duty is called an accord. Here Shelly is trying to relieve from her obligations under the original contract by agreeing to write five songs for Barbara. Hence the subsequent agreement is called an accord. Once accord is made, the original obligation is suspended and the satisfaction of the accord discharges the original obligation under the contract.
26. Answer: d. all of the above
Explanation:
An independent contractor status will help the employer to save on social security taxes and worker’s compensation insurance because these requirements apply only for employer-employee relationships. An employer is also generally not liable for the harm caused by the independent contractor’s negligence. Hence all the given options are correct for hiring Maxie as an independent contractor rather than as an employee.