Kent Incorporated Dynamite Data Ltd

Kent incorporated Dynamite Data Ltd., which worked with small businesses in developing graphs and charts from their data for presentations to bankers, shareholders, etc. Kent lent the company $25,000 by way of a shareholder's loan and took as security computers, plotters, and printers under a chattel mortgage document. An employee of the corporation, Jack, delivering some graphs to a customer, Roth, got into an argument with Roth, who was complaining that the graph was in red and not in pink as requested. It ended with Jack punching Roth, who fell onto a microscopic camera. The damage to the nose and camera: $35,000. Which of the following is true?

A) Even if Kent, the only shareholder, died, the corporation would not die and would still owe its outstanding debts.
B) If the corporation went bankrupt but owed creditors (other than Roth) , Kent would be in a worse position than unsecured creditors to collect proceeds realized from the sale of the corporation's assets.
C) Roth's action against Jack is for the tort of assault.
D) Kent is liable for the damage to Roth and the camera if neither Jack nor the employer/corporation has sufficient funds.
E) The corporation is not liable for the damage caused by the action of its employee, Jack.

Correct Answer:

Verified

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

Access For Free