Question

In: Operations Management

Randy is a manager at a popular sandwich shop. When taking the trash out, he catches one of his delivery drivers, Otto, smoking a marijuana joint.


Randy is a manager at a popular sandwich shop. When taking the trash out, he catches one of his delivery drivers, Otto, smoking a marijuana joint. This was not the first time he saw this particular behavior from Otto, but Randy didn't want to fire him right before the lunchtime rush. So he asked Otto to stay in the shop while he sent another employee to make deliveries. However, they were getting backed up with the deliveries and needed Otto to help. Randy then decided to have Otto deliver several orders to offices nearby the sandwich shop. Unfortunately, Otto failed to yield to incoming traffic while turning right into a busy intersection causing a fatal accident. Who is liable for the accident? 

  • Randy 

  • Otto 

  • Sandwich shop owner 

  • All of the above

Solutions

Expert Solution

All of the above

Since Otto was employed at the time of the accident, hence it is not only the responsibility of Otto but also his manager's and the organization itself for which he was working. The complete ownership of the accident and the liabilities arising out of it have to be borne by Otto, Randy and sandwich shop owner who employed Otto.


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