Patty owned a sole proprietorship. She had four salespersons selling the company's products
One of her salespersons made false statements about a competitor's products while trying to sell
Patty's products.
The competitor sues Patty's business and wins the lawsuit. Under what
circumstances could Patty be personally responsible to pay the judgment?
A) None, because this was a debt of the business
B) Patty is liable here regardless of any other circumstances
C) If Patty was separately named in the lawsuit
D) If Patty knew about the salesperson's activities
E) If the salesperson's activities were part of a continuing pattern rather than an isolated
incident
B
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Answer the following statement true (T) or false (F)
Logan, Caden, and Olivia are three unrelated parties who claim the standard deduction. All are married and attend Citron University, and each pays tuition of $6,100. Of this payment, Logan can claim a deduction of $4,000; Caden a deduction of $2,000; and Olivia no deduction at all. Explain.
What will be an ideal response?
Gwen applies for a homeowners' insurance policy on her house with Home & Life Insurance Company through Ivy, an agent who works for Home & Life. In this transaction, Ivy is
a. an agent for both parties. b. Gwen's agent, and not Home & Life's agent. c. Home & Life's agent, and not Gwen'sagent. d. not an agent for either party.