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goldenfox [79]
3 years ago
12

Powers drove a truck that his employer leased from Big Trucks. After Big repeatedly failed to respond to Powers' requests to fix

the strap used to close the truck's rear door, Powers replaced the strap with a nylon rope. Later, this nylon rope broke, causing Powers to fall and break his back. When Powers sued Big, what was the result?
Business
1 answer:
Serhud [2]3 years ago
3 0

Answer:

Powers will get compensation from Big Truck for his back injury under the Law of Negligence.

Explanation:

Negligence is a form of tort where although there is no contract between the two parties, yet one party is reasonably expected to excercise duty of care to another party so his or her safety, wellbeings may be upheld.

The principle of Law of Negligence was not created until 1932 following the result of the case Donoghue v Stevenson. In this case, Stevenson was a ginger beer manufacturer and Donoghue was given a bottle of ginger beer, drank half of it before realizing there was ecomposing snail. Donoghue later suffered nervous shock and sued Stevenson. Though there was no contract between Donohue and Stevenson, the Hous of Lords at that time decided Donoghue was legally able to ask Stevenson for damages.

To show that one party is negligent and owe another party damages, there are three things the claimant has to prove: 1. Is there a duty of care?; 2. Does the defendant breach the duty of care?; 3. The suffered damanges is caused due to the breach of duty of care?

Apply to the case Power v Big Trucks, 1. Yes, there is a duty of care owed by Big Trucks to anyone who will drive their rental truck that the truck is of enough safety; 2. Yes, they breach the duty of care because the truck was not safe enough to be driven and they repeatedly ignored notification from Powers about its unsafety; 3. Yes, Had Big Truck fullfilled its duty of care by fixing the strap, Powers would not have fallen and broken his back.

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Answer:

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Here is the complete question:

Beta Corporation acquired 100 percent of the voting shares of Yang Inc. by issuing 10,000 new shares of $10 par value common stock with a $40 market value.

Required:

1) Which company is the parent and which is the subsidiary?

2) Define a subsidiary corporation.

3) Define a parent corporation.

4) Which entity prepares consolidated worksheet?

5) Why are elimination entries used?

Here are the answers:

1. Beta Corporation is the parent while Yang Inc. is the subsidiary.

2.A subsidiary  corporation is an investee company in which another entity has a controlling interest in. This controlling interest is majorly achieved when the entity has more than 50% f the total voting shares.

3. A parent corporation is the investment entity which has a controlling interest in another entity called subsidiary.

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