Active TopicsActive Topics  Display List of Forum MembersMemberlist  Search The ForumSearch  HelpHelp
  RegisterRegister  LoginLogin
REG STUDY GROUP
 CPAnet Forum : REG STUDY GROUP
Subject Topic: Becker and Gleim have different answers (Topic Closed Topic Closed) Post ReplyPost New Topic
  
Author
Message << Prev Topic | Next Topic >>
kanba
Newbie
Newbie


Joined: 06 Nov 2011
Online Status: Offline
Posts: 29
Posted: 29 Dec 2011 at 20:51 | IP Logged  

Becker and Gleim have different answer to this question:

A disclosed principal will be liable to third party for its agent's unauthorized misrepresentation if the agent is an

    employee    independent contractor

A. Yes         &nb sp;  Yes

B. Yes         &nb sp;   No

Becker's answer is B since principal is just liable for employee's tort. However Gleim's answer is A. The explaination is for unauthorized misrepresentation, principal is liable for both employee and independent contractor although in general principal is just liable for employee's tort.

Back to Top View kanba's Profile Search for other posts by kanba
 
Zipties
Newbie
Newbie


Joined: 04 Jan 2011
Online Status: Offline
Posts: 16
Posted: 30 Dec 2011 at 10:01 | IP Logged  

Technically, they're both true, but for the CPA exam, I would say Becker is correct. Generally, a principle is not liable for the torts of independent contractors; however, it could possibly be liable if they are using independent contractors to avoid liability under "inherently dangerous activities." (Stout v. Johnson)
Back to Top View Zipties's Profile Search for other posts by Zipties
 



Sorry, you can NOT post a reply.
This topic is closed.


  Post ReplyPost New Topic
Printable version Printable version

Forum Jump
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot delete your posts in this forum
You cannot edit your posts in this forum
You cannot create polls in this forum
You cannot vote in polls in this forum

Powered by Web Wiz Forums version 7.9
Copyright ©2001-2010 Web Wiz Guide

This page was generated in 0.0957 seconds.

Copyright © 1996-2016 CPAnet/MizWeb Communities All Rights Reserved
Twitter
|Facebook |CPA Exam Club | About | Contact | Newsletter | Advertise & Promote