Jack Kihn incorporated and put $20 000 into the corporation by way of a shareholder's loan and took back a chattel mortgage 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 his tort and his employer is also liable.
B)Although Kihn is the sole shareholder of the corporation,he is not responsible for company debts.
C)Kihn himself is vicariously liable for the damage caused by the employee.
D)The employee is liable for the tort of battery.
E)If the corporation went bankrupt,Kihn himself would be a secured creditor.

Question

Quizplus · Accepted Answer

Vicarious liability in this case would only apply if the employee was acting within the scope of their employment. However, the employee's actions were not within the scope of their employment, but rather a personal attack. As a result, Kihn would not be vicariously liable for the employee's actions.

Jack Kihn Incorporated and Put $20 000 into the Corporation