Jerry Foster is a sole proprietorship who owns a canoe renting business. Jerry’s
employee, Terry Gibbs, greets customers at the company’s office, loads the
customers and their rented canoes onto a van, provides them with safety
instructions and drives them upstream. Once unloaded the canoers are on their
own to float back to the company’s office to check in. Although there have been
minor accidents, no one has drowned in the nine years the business has been in
operation. Jerry plans to add kayaks and rubber rafts next year. The scenery is
beautiful and each day people see wild animals come down to the water.

-If someone does drown this year,who will be held liable?
A)Terry Gibbs
B)Jerry Foster
C)Terry and Jerry
D)the customer and/or his canoe partner

Question

Jerry Foster is a sole proprietorship who owns a canoe renting business.  Jerry’s 
employee, Terry Gibbs, greets customers at the company’s office, loads the 
customers and their rented canoes onto a van, provides them with safety 
instructions and drives them upstream.  Once unloaded the canoers are on their 
own to float back to the company’s office to check in. Although there have been 
minor accidents, no one has drowned in the nine years the business has been in 
operation. Jerry plans to add kayaks and rubber rafts next year. The scenery is 
beautiful and each day people see wild animals come down to the water.

-If someone does drown this year,who will be held liable?
A)Terry Gibbs
B)Jerry Foster
C)Terry and Jerry
D)the customer and/or his canoe partner

Quizplus · Accepted Answer

Jerry Foster, as the sole proprietor and owner of the canoe renting business, would be held liable for any accidents, including drowning, that occur as part of the business operations. In a sole proprietorship, the owner is personally responsible for all aspects of the business, including liabilities arising from its operations.

Jerry Foster Is a Sole Proprietorship Who Owns a Canoe