Solved

Jack Kihn Incorporated and Put $20,000 into the Corporation by Way

Question 4

Multiple Choice

Jack Kihn incorporated and put $20,000 into the corporation by way of a shareholder's loan and took back a Security Agreement on the corporation's equipment. The corporation created decorative boxes. An employee of the company delivered some boxes to a customer who complained about the colour used. The employee became so angry that he shoved the customer, who fell into a glass display case, causing $30,000 damage to the customer and the case. On these facts, which of the following is false?


A) The employee is liable for the tort of battery.
B) The employee is liable for his tort and his employer is also liable.
C) Kihn himself is vicariously liable for the damage caused by the employee.
D) If the corporation went bankrupt, Kihn himself would be a secured creditor.
E) Although Kihn is the sole shareholder of the corporation, he is not responsible for company debts.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents