Question

In: Operations Management

Consider the following facts: Tom was sued by Aaron. After trial, Aaron received a Judgment against...

Consider the following facts:

Tom was sued by Aaron.
After trial, Aaron received a Judgment against Tom in the amount of $20,000.
Tom works for Alex.
Aaron filed for, and received, a Garnishment of Tom’s wages.
The Garnishment allows Aaron to receive $100/week from Tom’s paycheck.
Aaron served the Garnishment on Alex.
Which of the following is true?

Options:
If Alex ignores the Garnishment, he may be liable to Aaron for up to $100.

If Alex ignores the Garnishment, he may be liable to Aaron for up to $19,900.

If Alex ignores the Garnishment, he will not be liable to Aaron for any funds, because he was not a defendant in the original case.

If Alex ignores the Garnishment, he may be liable to Aaron for up to $20,000.

Solutions

Expert Solution

The correct answer is : If Alex ignores the Garnishment,he may liable to Aaron for up to $ 20000

Since the judgement against Tom required him to pay an amount of $ 20000,Tom's employer Alex is required by the law to hold Tom's paycheck and pay Aaron an amount of $ 100/week.It is Alex's responsibility to pay Aaron and if he ignores the garnishment order,then he is personally liable to pay the entire amount of garnishment.The court might also take disciplinary action against Alex for ignoring the garnishment.


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