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Three Legal Questions

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Q#1
Pete's Pizza employs Quincy as a delivery driver. Pete's guarantees that an order will be delivered within thirty minutes or there is no charge, and insists that its drivers meet the limit. One night, while making a delivery, Quincy is caught in a traffic jam. To deliver the pizza within the thirty-minute time limit, Quincy drives onto a sidewalk and hits Ruth, a pedestrian. Is Pete's liable to Ruth for her injuries? Is Quincy liable to Ruth? Why or why not?

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Q#2

Jane, Kyle, and Lynn organize a nonprofit business-JKL Markets, Inc.-to buy groceries from wholesalers and sell them to consumers who buy a membership in JKL. Because the firm is a nonprofit entity, it is able to sell the groceries for less than a commercial grocer could. What form of business organization is JKL Markets? Is it significant that JKL is incorporated?

Answer:

Q#3

Todd is a director and officer of United Sales, Inc. Todd makes a marketing decision that results in a dramatic decrease in profits for United and its shareholders. The shareholders accuse Todd of breaching his fiduciary duty to the corporation. What is Todd's best defense against this accusation? Later, a resolution comes before the United board to compete with VeriFine Products, Inc. Todd is a director and shareholder of VeriFine. What is Todd's responsibility in this situation? hide problem

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Solution Preview

Q#1
Pete's Pizza employs Quincy as a delivery driver. Pete's guarantees that an order will be delivered within thirty minutes or there is no charge, and insists that its drivers meet the limit. One night, while making a delivery, Quincy is caught in a traffic jam. To deliver the pizza within the thirty-minute time limit, Quincy drives onto a sidewalk and hits Ruth, a pedestrian. Is Pete's liable to Ruth for her injuries? Is Quincy liable to Ruth? Why or why not?

Answer:
Through the doctrine of Respondeat Superior, Pete's Pizza is responsible for the torts of its employees as long as the employee was acting in the scope of employment. Even though driving on the sidewalk is probably not approved by the owner of Pete's Pizza, Quincy was still acting in the scope of employment by delivering the pizza. However, individuals are responsible for their own negligent actions so Quincy is still liable to Ruth but usually the ...

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