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