Ace Corporation engaged Kosier, CPA, to perform a consulting engagement. While driving to Ace's office, Kosier was involved in an automobile accident in which Norton was injured. The accident was solely Kosier's fault. If Norton sues both Ace and Kosier for the injuries Norton sustained, what will be the result?

A. Both Kosier and Ace will be liable.
B. Kosier will be liable, and Ace will not be liable because Kosier is an independent contractor.
C. Ace will be liable under the principle of respondeat superior, and Kosier will not be liable.
D. Ace will be liable because of Kosier's actual authority, and Kosier will not be liable.

Answer: B. Kosier will be liable, and Ace will not be liable because Kosier is an independent contractor.

Business

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