Yen grants his cousin, Art, a franchise in Yen's sandwich shop. Yen writes the agreement so that he controls every detail of Art's shop, such that it is exactly the same as Yen's original shop. Yen even consults with Art about hiring employees and safety practices. One of Art's employees fails to clean up a spill and a customer is injured. The customer sues Yen. In this case, Yen:
a.) will not be liable because Yen is the franchisor, not the franchisee.
b.) will be liable because of res ipsa loquitur.
c.) will not be liable because it is Art's sandwich shop.
d.) risks liability under the doctrine of respondeat superior.
d.) risks liability under the doctrine of respondeat superior.
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Baird conveys property to Carr for Carr's lifetime and designates Leslie to be the remainderman. Then Carr dies, what ownership interest would Leslie have the property?
A. Leasehold Estate. B. Estate in reversion. C. Fee simple estate. D. Life estate.
Boalsburg Co purchased a truck on January 1, 2014, for $30,000 . The truck had an estimated life of 5 years and an estimated residual value of $5,000 . Lightning Delivery used the straight-line method to depreciate the asset. On July 1, 2016, the truck was sold for $17,000 cash. The journal entry to record the sale of the truck in 2016?
a. increases net income b. increases total assets c. decreases total expenses d. decreases stockholders' equity