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1. Jim owns a pizza shop. He knows Jack, his employee and delivery person, has a suspended driver's license due to reckless driving. Nevertheless, Jim tells Jack to use the company delivery van to deliver pizzas to a customer. On the way back to the pizza shop after delivering the pizzas, Jack speeds through a red light and hits another car, injuring the driver and passenger of that car. Jim is

A. not liable for Jack's conduct.

B. liable for his own negligence in instructing Jack to drive with a suspended license.  

C. only liable if Jack intentionally wrecked the van into the car.

D. not liable because this conduct was outside the scope of Jack's employment.

2. Andrew, an attorney, tells his employees that he will likely give them a year-end bonus if business continues to be good and if their performance merits a raise, which will be totally in his discretion. He tells them that the bonus also depends on whether a large medical malpractice case settles favorably for his client. The case settles favorably for his client, the employees perform very well, and fourth quarter earnings are up. Andrew's statement about the year-end bonus lacks consideration because

A. performance depends solely on Andrew's discretion

B. it is an illusory promise.

C. promisor.

D. all of the above.

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M92184803

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