Adam Feinstein, the owner of a mill, receives a large insurance settlement of several million dollars...

Adam Feinstein, the owner of a mill, receives a large insurance settlement of several million dollars after the mill burns down. Is he under an obligation to rebuild the mill or can he just take the money and retire on it? All of the following answer choices are true EXCEPT:

A. If he retires, maybe he could share the money with other people who were affected when they lost their jobs, etc.

B. Federal law prevents Feinstein from taking the money and not rebuilding.

C. This is an ethical question, not a legal one.

D. If he does not rebuild the mill, that could negatively affect employees, shareholders, contractors, and others.

Expert Solution

Answer - Option C

This is an ethical question not a legal question.

Rather this question is being governed by the laws of insurance.

Rahul Sunny answered 2 years ago

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