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mezya [45]
3 years ago
7

Two general contractor firms, Atlantic Builders and North West Mechanical, form a joint venture for the purposes of completing a

large construction job. They are collaborating on all phases of the project. An Atlantic Builders’ employee operating a crane accidentally drops a steal beam onto a car parked near the construction site. Who is liable for the damage to the car?
a. The joint venture only.

b. The joint venture and Atlantic Builders have joint and several liability.

c. Atlantic Builders only.

d. Atlantic Builders and North West Mechanical are both liable.

Clean Earth, Inc. is a Delaware benefit corporation that produces cleaning products using 100 percent recycled, organic, and sustainably produced materials. Several years ago, it became a socially conscious organization and has fulfilled all of the reporting requirements since then. Clean Earth executives have decided to purchase its paper product supplies (such as napkins and toilet paper) from a new supplier, who plants two trees for every tree it uses. Since this supplier charges five times more than Clean Earth’s previous supplier, profits from Clean Earth’s paper products are expected to be cut in half. If a Clean Earth shareholder challenges the decision as being unfair to shareholders how will a court likely rule?

a. For the shareholder, because the cut in profits will unreasonably reduce shareholders’ returns.
b. For the shareholder, because, although social enterprise managers may consider environmental factors when making decisions, they may not place them above shareholders’ interests.
c. Against the shareholder, because social enterprise managers are required to place the interests of the environment before the interests of stakeholders and shareholders.
d. Against the shareholders, if it finds that Clean Earth has acted in a "responsible and sustainable manner."

Fitness World is a corporation with 75 shareholders that are individuals who all hold common stock. At an annual meeting, the shareholders unanimously voted that Fitness World should register as an S corporation with the IRS so that the shareholders may enjoy the flow-through tax benefits. Is Fitness World eligible to register as an S corp.?

a. Yes, if Fitness World is already a close corporation under state law.
b. Yes, if all of the shareholders are U.S. citizens or residents.
c. No, because Fitness World has more than 50 shareholders.
d. No, if Fitness World is already a close corporation under state law.
Business
1 answer:
gregori [183]3 years ago
7 0

Answer:

(d) Atlantic Builders and North West Mechanical are both liable.

Explanation: Because the incident happened at working site and both companies are on a joint venture, they are both liable to the damage regardless of which company does the employee belong to.

Answer:

(d) Against the shareholders, if it finds that Clean Earth has acted in a "responsible and sustainable manner."

Answer:

(b) Yes, if all of the shareholders are U.S. citizens or residents.

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