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skad [1K]
4 years ago
14

Natalie, age 17, rented a power washer and while using the machine, she negligently damaged it beyond repair. Under the majority

view, the rental company can successfully sue Natalie for damages on a tort theory of negligence since it is well settled that minors are liable for their torts.
Business
1 answer:
anzhelika [568]4 years ago
8 0

Answer:

False

Explanation:

Natalie can return the washing machine without being liable for any replacement costs. Natalie is a minor, and minors cannot legally sign a contract except for purchasing necessities, e.g. food, clothes.  

Since the washing machine probably had a significant cost, there should have been a written contract between the parties. The rental company should have requested Natalie some type of legal identification before renting the washing machine and signing the contract. Their only possible defense is that Natalie used a forged ID when she rented the machine, and that they were ticked by it.

But if the rental company cannot prove that Natalie tricked them using some fake ID, then Natalie has the right to void the contract and return the item. It doesn't matter if the washing machine suffered damages or not, Natalie is not liable for any reparation or replacement costs.  

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<u>Answer/Explanation</u>:

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<em>c. In the ratio of time devoted to the business.</em>

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<em>d. Interest of 5% on original investments and the remainder equally.</em>

<em>Interest</em>

<em>For Sally= 5% of $195,000 = $9,750</em>

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<em>e. Interest of 5% on original investments, salary allowances of $50,000 to Sally and $85,000 to Samantha, and the remainder equally</em>

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<em>For Samantha= 5% of $65,000 = $3,250.</em>

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<em>(g), except that Samantha is also to be allowed a bonus equal to 20% of the amount by which net income exceeds the total salary allowances</em>

<em>Total salary allowances= $85,000+$65,000=$150,000;</em>

<em>Net income exceeds value by $235,000-$150,000= $85,000</em>

<em>Therefore, 20% of 85,000 = $8,500 as bonus.</em>

<em />

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