The correct option is D. Incentive plans never fail to satisfy employee expectations for pay gains.
An incentive program is a proper scheme used to sell or inspire precise actions or behavior by a specific organization of people throughout a described time frame. Incentive programs are especially utilized in enterprise management to motivate employees and in income to draw and keep clients.
In most instances, incentive websites grant rewards for finishing necessities. This generally calls for viewing classified ads, signing up for a website, entering a PIN code (via a cellular tool), buying trial merchandise or full merchandise, or finishing surveys. This in turn rewards the specified user in cash, factors, test, or its equal. Alternately, a suggestion might also entail referring website traffic by inviting them to a goal site beneath a referral link (precise to each consumer). Referrers in flip are either paid for all and sundry they invited or as a percentage of ensuing revenue.
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Which of the following is true of incentive plans?
(a) Incentive payouts are fixed costs largely unrelated to output.
(b) Incentive compensation is unrelated to operating performance.
(c) Incentive plans never fail to satisfy employee expectations for pay gains.
(d) Incentive payouts are a means to reward or attract top performers when salary budgets are low.
on march 2, a treasury bill expiring on april 20 had a bid discount of 5.86, and an ask discount of 5.80. what is the best estimate of the risk-free rate as given in the text? show your work. no credit for the correct answer without showing work. a) 5.86 % b) 5.83 % c) 6.11 % d) 6.14 %
6.11% is the best estimate of the risk-free rate mentioned in the text.
What exactly is the risk-free rate?The risk-free rate of return is the rate of return on a hypothetical investment with scheduled payments over a specified period of time that is considered to satisfy all payment commitments.
Because the risk-free rate can be attained with no risk, any other investment with any risk must have a greater rate of return to entice investors to keep it. In fact, market players frequently pick the yield to maturity on a risk-free bond issued by a government of the same currency whose default risks are so minimal that they are inconsequential to deducing the risk-free interest rate in that currency.
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Which element of the fraud triangle do companies have the greatest ability to eliminate? A. Motive, B. Rationalization. C. Opportunity D. Intelligence
The correct option is C. Opportunity element of the fraud triangle do companies have the greatest ability to eliminate.
In step with Albrecht, the fraud triangle states that “people are prompted to devote fraud whilst 3 factors come collectively: (1) some sort of perceived strain, (2) some perceived opportunity, and (three) some manner to rationalize the fraud as now not being inconsistent with one's values.”
The fraud triangle consists of three components: (1) possibility, (2) Incentive, and (three) rationalization. Fraud refers to the deception that is intentional and caused by an employee or enterprise for personal advantage. Donald Cressey is the father of the fraud triangle. when possibility offers itself, the temptation can trump judgment. spoil the fraud triangle by means of getting rid of one of the three factors: motivation, rationalization, or possibility. The enterprise proprietor is maximum on top of things regarding the possible detail.
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what is the break-even point for the american division?
When a company's revenues are equal, that point is known as break-even. One of two methods can be used to calculate the break-even point
What would revenue mean?Revenue is the entire amount of money made through the sale of products or services linked to a business's core operations. Because it appears just at top of the earnings statement, revenue, also referred to as gross revenue, is frequently called the "top line." A company's overall revenue or profit is known as income, or net income.
Is income or profit defined as revenue?Profit is the net money left over after deducting costs from earnings, whereas revenue is the income created by business operations. Sales, income through fees, and income from property are just a few examples of the different ways that money might come in.
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an oligopoly is an industry composed of a limited number of large firms. group of answer choices true false
An industry with just a few large companies is called an oligopoly. It is True.
How Does an Oligopoly Work?An oligopoly is a market structure with just a few companies that can't stop the others from having a big impact. The largest companies' market share is measured by the concentration ratio.
A market with only one producer is a monopoly, a market with two firms is a duopoly, and a market with two or more firms is an oligopoly. An oligopoly's number of firms cannot be precisely determined, but it must be low enough that one firm's actions have a significant impact on those of the others. Steel manufacturers, oil companies, railroads, tire manufacturers, grocery store chains, and wireless carriers are examples of historical oligopolies. An oligopoly's potential to obstruct new entrants, impede innovation, and raise prices—all of which would be detrimental to customers—is a legal and economic concern.
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The hechsler-ohlin theory suggests that __________ country would produce and export labor-intensive products.
Heckscher-Ohlin theorem (H-O). Capital-rich countries export capital-intensive goods, and labor-rich countries export labor-intensive goods. It states that capital-rich countries export capital-intensive goods.
The Heckscher-Ohlin model evaluates the trade balance between two countries with different characteristics and natural resources. This model describes how states should and should act when resources become imbalanced around the world. According to the Heckscher-Ohlin theory, trade allows countries to specialize. Each country exports the products it is best suited to produce in exchange for products that are unsuitable for production.
Given these assumptions, Heckscher and Olin concluded that a country has a comparative advantage in the goods produced by the factors of production (land, labor, or capital) it has in abundance. This logically leads to increased exports of these commodities.
A key assumption of the Heckscher-Ohlin model is that the two countries are identical except for differences in resource endowments. This also means that the aggregated preferences are the same.
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why is an equity indexed annuity considered to be a fixed annuity?
An equity indexed annuity is considered to be a fixed annuity because it provides a guaranteed minimum interest rate, just like a traditional fixed annuity.
What's the Benefits of an Eguity Indexed Annuity?However, an equity indexed annuity also has the potential for additional earnings based on the performance of a specific stock market index, such as the S&P 500.
This combination of a guaranteed minimum interest rate and the potential for additional earnings makes an equity indexed annuity a type of fixed annuity.
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consumer who purchased the policy is called___
The consumer who purchased the policy is called a policyholder.
Who is a Policyholder?A policyholder is an individual or entity who owns an insurance policy and has the right to exercise the benefits and privileges stated in the policy.
The policyholder is responsible for paying the premiums and ensuring that the policy remains in force.
The policyholder is also referred to as the insured or the owner of the policy.
Therefore, the consumer who purchased the policy is called a policyholder.
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The projected growth in buyer demand for private-label athletic footwear is O 5-7%% annually in all four geographic markets during Years 11-15, O 10% annually in North America and Latin America during the Year 11-Year 20 period. O 9% annually in Europe-Africa and the Asia-Pacific regions during Years 11-20. O 4-6% annually across all 4 regions during Years 11-20. 10-12% annually in the Asia-Pacific and Latin America regions during Years 16-20.
In North America and Latin America, the projected growth in consumer demand for private-label athletic footwear is 10% per year from 2011 to 20. The best choice is b.
What does North America's economy look like?The International Monetary Fund (IMF) estimated North America's GDP per capita to be $41,830 in October 2016, making it the richest continent in the world, followed by Oceania. The economies of the US, Mexico, and Canada are all large and complex. Of the three nations in the globe, the United States has the largest economy.
The United States, which has the most advanced technology of the three, had the highest per capita gross domestic product (PPP) in 2016, with an estimated value of $57,466 in 2016, according to the World Bank.
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an accountant who combines accounting and investigating skills to______-
a certified public accountant who employs both accounting and investigative techniques to find or stop fraud in company. Written by:
Why do people get certified?
With the help of certifications, you may demonstrate to potential employers and your existing employer that you possess the talents you claim to have. They test more than just your knowledge; they also your problem-solving and task-performance skills.
Since you passed its test and demonstrated that you had the required education and experience, you have been granted permission by an official organization to perform a specific job: The Dental Assisting National Board has certified every licensed dental assistant. an authorized accountant.
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if consumers often purchase croissants to eat while they drink their cappuccinos at local coffee shops, what would happen to the equilibrium price and quantity of cappuccinos if the price of croissants rises?
Option b. Both the equilibrium price and quantity would decrease. /reduce. Equilibrium is a state in which market demand and supply are in equilibrium, resulting in stable prices.
In general, an oversupply of goods and services leads to falling prices, which leads to an increase in demand, while an undersupply or shortage leads to a rise in prices, which leads to a decrease/reduction in demand.
At equilibrium prices, the supply of goods equals the demand. When a major index goes through a period of correction or flattening, the forces of demand and supply are relatively equal and the market is said to be in equilibrium.
When the market is not in equilibrium it is called imbalance. Imbalances can occur instantaneously in more stable markets, or they can be a systemic feature of certain markets.
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4. If consumers often purchase croissants to eat while they drink their cappuccinos at local coffee shops, what would happen to the equilibrium price and quantity of cappuccinos if the price of croissants rises?
a.
Both the equilibrium price and quantity would increase.
b.
Both the equilibrium price and quantity would decrease.
c.
The equilibrium price would increase, and the equilibrium quantity would decrease.
d.
The equilibrium price would decrease, and the equilibrium quantity would increase.
broker cliff waited 15 days to notify frec of conflicting demands from a seller and buyer. how many more days does broker cliff have left to implement a settlement procedure?
must be examined to determine the complexity of the situation and the time needed to come to a resolution.
Additionally, any applicable laws or regulations must be taken into consideration, as these may impose specific timelines or requirements for dispute resolution.
The willingness of the parties to negotiate and reach a resolution is another important factor to consider. If both the buyer and seller are open to compromise and willing to work together to find a solution, the process may be completed more quickly than if one or both parties are resistant to negotiation.
In general, it is important to address conflicting demands as quickly as possible in order to avoid further escalation of the situation and potential legal action. Delaying resolution for an extended period of time can also damage relationships with clients and harm a broker's reputation in the industry.
Ultimately, the time frame for implementing a settlement procedure will vary depending on the specifics of the situation. Broker Cliff should work diligently to resolve the conflict in a timely manner while also ensuring that all parties involved are treated fairly and their interests are represented.
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what general characteristics of a country should managers consider when analyzing an economic environment? what specific indicators help managers measure the economic development, performance, and potential of a country? (5 points)
Per capita income, often known as average income development, refers to the average annual income per person in a particular place. By dividing the region's total income by its entire population, the amount is calculated.
Per capita income has traditionally been considered as a measure of development. Several factors influence economic development, including the size of the nation's population, the state of the world, international cooperation, the priorities the nation has set for its economy, etc.
The Human Development Index (HDI) is used to gauge development. The United Nations calculates the HDI. It gauges each nation's average income, life expectancy, and degree of education.
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the best use of a gantt chart is to: group of answer choices show expected start and end times for project activities and to track actual progress against these time targets. shorten the overall duration of a project. show precedence requirements for a project's constituent activities. determine the earliest start and finish times for each project activity.
Answer: Mark me brainliest please look in explanation for answer
Explanation:
The best use of a Gantt chart is to show expected start and end times for project activities and to track actual progress against these time targets.
ne that a university hires a construction company to build a new library. before starting, the project manager outlines the building materials the project needs. they also outline the roles and amount of workers to hire. which key component of project initiation does this scenario conc
Defining the project requirements is a critical step in project initiation, as it helps ensure that all stakeholders have a clear understanding of what the project aims to achieve.
This scenario describes the process of defining the project requirements, which is a key component of project initiation. Defining the project requirements involves identifying and documenting the project objectives, goals, deliverables, constraints, and other relevant details. In this scenario, the project manager outlines the building materials and the roles and amount of workers needed, which are all part of the project requirements. This information will be used to develop the project plan, budget, and schedule, and to guide the project team throughout the project execution phase. Overall, defining the project requirements is a critical step in project initiation, as it helps ensure that all stakeholders have a clear understanding of what the project aims to achieve and how it will be accomplished.
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a company's controller estimated bad debt expense using the percentage of accounts receivable method. total sales for the year were $1,500,000. the ending balance in accounts receivable was $300,000. an examination of the outstanding accounts at the end of the year indicates that approximately 7% of these accounts will ultimately prove to be uncollectible. before any adjustment, the balance in the allowance for bad debts is $4,000 (credit). total accounts written off as uncollectible during the year were $15,000. which debit or credit is included in the adjusting entry to record bad debt expense for the year? credit allowance for bad debts for $17,000 which costs are included in
The adjusting entry to record bad debt expense for the year will include a debit to Bad Debt Expense and a credit to Allowance for Bad Debts. The amount credited to Allowance for Bad Debts in the adjusting entry will be the amount necessary to adjust the balance to the required ending balance based on the estimated percentage of accounts receivable that will ultimately prove to be uncollectible.
The adjusting entry for bad debt expense is calculated as follows:
The ending balance in accounts receivable is $300,000, and approximately 7% of this amount is estimated to be uncollectible, which is $21,000 ($300,000 x 7%).
The current balance in the Allowance for Bad Debts account is $4,000 (credit), and the required ending balance is $21,000.
Therefore, the adjusting entry will include a credit to Allowance for Bad Debts for $17,000 ($21,000 - $4,000) to bring the balance up to the required ending balance.
The debit to Bad Debt Expense will also be $17,000 to record the estimated bad debt expense for the year.
As for the costs that are included, there are no additional costs provided in the question that would be included in the adjusting entry for bad debt expense. The adjusting entry is solely to adjust the Allowance for Bad Debts to the required ending balance based on the estimated percentage of uncollectible accounts receivable.
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to have better safety records, the xyz company gives monetary incentive awards to its workers for lower accident rates due to improper use of heavy equipment. which of the following incentive plans describes this example? question 9 options: piecework management incentive behavioral encouragement referral
Earnings are directly correlated with the level of production by the employee when there is piecework. Setting work criteria for each group member and keeping track of their productivity is one method of utilizing the team and group incentive plan.
What do incentive pay programs have as their goal?explains group incentive programs that offer participating employees a payout as an incentive for bettering the performance of the firm, whether it's through higher productivity, higher customer happiness, cheaper expenses, or improved safety records. a particular kind of profit-sharing scheme that values employee participation.
Provide an example of a negative incentive.People are worse off as a result of "penalties," which are negative incentives. Negative incentives include losing TV time, skipping swimming, skipping Physical class, and time out. These are things that you wish to avoid occurring.
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manufacturing overhead applied to production is always recorded on the
Manufacturing overhead applied to production is always recorded on the (1) side of the manufacturing overhead account.
What is a good example of factory overhead?They are also known as "conversion costs" since they are expenses incurred to turn a raw material into a finished product. Rent, insurance, building and equipment upkeep, and property taxes are some other instances of manufacturing overhead expenses.
What is the formula for manufacturing overhead?Overhead Formula for Manufacturing
You need to first determine what your company's production costs are. Once you've finished, tally them all up or multiply the overhead cost per unit by the quantity of units you produce. Divide your monthly sales by that amount to get a percentage, then multiply that result by 100.
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a commercial project requires the installation of 1,856 square feet of acoustical ceiling. using a productivity rate of 0.013 labor hours per square foot and a productivity factor of 0.95, determine the number of adjusted labor hours required to install the ceiling.
The installation of 1,856 square feet of acoustical ceiling is necessary for a commercial project. using 0.013 work hours per square foot as the productivity rate.
What sort of endeavor would be deemed commercial?Any building project that is not a residential project, such as an office building, hospital, church, or store, is referred to as a "Commercial Project (Private)". Construction of tract homes, multi-family structures, or condominiums may fall within this criteria.
How does the term "commercial" apply to project management?A commercial project manager is in charge of keeping track of how business initiatives are progressing across the organization's many industries. Commercial project managers plan the processes for the project deliverables, such as the resources, budget, and schedules.
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an industrial tool manufacturer relies on a distributor network with the largest online outlet and store network aimed at construction workers. the distributor network is seeking a manufacturer to provide them with private label products. they've decided they will offer only their own product line and not any other brand in this category of industrial tools. now the industrial tool company must decide whether to agree to this proposition or lose this company as a customer. this is an example of which of the competitive forces at play in this industry?
This scenario is an example of the bargaining power of buyers, one of the competitive forces identified by Michael Porter in his Five Forces Framework.
The decision of the distributor network to sell just its own product line and no other brand in this category of industrial tools offers them tremendous bargaining power with the industrial tool maker. The distributor network is essentially utilizing its market power to impose terms on the producer, putting pressure on the manufacturer to accede to the proposition or risk losing a significant customer.
Because of its size and the fact that it has the largest online outlet and retail network geared at construction workers, the distributor network's bargaining power is likely to be considerable in this scenario.
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turner company reported assets of $20,000 (including cash of $9,000), liabilities of $8,000, common stock of $7,000, and retained earnings of $5,000. based on this information, what can be concluded?
25% of Turner's assets are the result of prior earnings. If a company's total assets increased while liabilities and common stock remained unchanged.
Retained earnings must have increased. In order for retained earnings to increase, the company must have reported net income as a result of income exceeding expenses.When calculating your company's retained cash flow, you must locate the cash flow statements for the previous two financial periods. Then identify the total cash flow figure on the statements, and then subtract dividends and expenses.To calculate retained earnings, take the current balance in the retained earnings account,add the current period net income or subtract the net loss,and subtract any dividends or distributions to owners or shareholders.In the partnership company,every time there is a change in the profit-sharing relationship between the partners,it is necessary to revalue the assets and revalue the liabilities of the company to determine the current value.
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in a simple linear regression model we use the normal quantile plot of the residuals to evaluate if it is reasonable to assume the ___________ come from a normal distribution.
The basic regression model posits a linear relationship, Y = + X +, between a dependent variable Y and an explanatory variable X, with the error term comprising omitted components.
How is a basic linear regression test assumed?The Durbin Watson test is the simplest method for examining the independence presumption. The durbinWatsonTest built-in function in R can be used to perform this test on our model. When you run this test, you'll get an output with a p-value that will allow you to assess if the assumption is true or false.
What traits distinguish simple linear regression?Characteristics of Linear Regression
The linear regression's y-intercept is the same as the regression constant (b0). The slope of the regression line, which is the regression coefficient (b1), is
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one of the main advantages of standardization is that it increases the potential variety of products. true/false
False. Standardization refers to the creation of distinctive products and services that set the company and its brand apart from those of its rivals.
The idea of standardisation prefers to reduce the product line and variety of items rather than expanding the product line. Instead of creating multiple items or a product with a variety of tastes and variants, the manufacturer concentrates on creating a distinct and one-of-a-kind product. As a result, the assertion is wholly false. Standardization is the process of establishing guidelines for the production of a good or service based on the agreement of all pertinent stakeholders in the sector. The standards make guarantee that the products or services produced in a certain industry are of a consistent quality and equal to those of other companies offering similar goods or services.
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eagle crest company has provided the following information for its recent year of operation: the common stock account balance at the beginning of the year was $13,000 and the year-end balance was $16,500. the additional paid-in capital account balance increased $3,800 during the year. the retained earnings balance at the beginning of the year was $75,000 and the year-end balance was $92,000. net income was $39,000. how much did eagle crest sell its common stock for during the year?
The quantity of common stock sold is determined independently of the growth in the extra paid-in capital account. As a result, during the year, Eagle Crest Company sold $3,500 worth of common stock.
The increase from $13,000 to $16,500 in the common stock account balance shows the money raised by issuing common stock. Due to this ($16,500 - $13,000), Eagle Crest sold its common stock for $3,500 during the year.
The amount of capital raised by the issuing of shares over its par value is represented by the rise in the extra paid-in capital account balance. Eagle Crest issued stock over par value as a result, raising $3,800 in capital.
At the conclusion of the year, the retained profits amount was $92,000, which is equal to the $75,000 starting balance plus the $39,000 in net income minus any dividends paid. We are unable to determine the amount because the issue is silent on dividend payments.
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the ending inventory of finished goods has a total cost of $9,100 and consists of 700 units. if the overhead applied to these goods is $3,116, and the overhead rate is 76% of direct labor, how much direct materials cost was incurred in producing these units? multiple choice $5,984. $3,864. $4,100. $1,884. $9,100.
The direct materials cost incurred in producing these units is $1,884. (Option D)
How do you calculate the direct materials cost?We need to calculate the amount of overhead applied per unit of finished goods:
Overhead rate = 76% of direct labor
Applied overhead per unit = Overhead rate * Direct labor cost per unit
We know that the overhead applied to the finished goods is $3,116, and the overhead rate is 76% of direct labor. Therefore, we can set up the following equation:
$3,116 = 0.76 * Direct labor cost per unit * 700
Solving for Direct labor cost per unit, we get:
Direct labor cost per unit = $3,116 / (0.76 * 700) = $6.16
Now, we can calculate the amount of overhead applied per unit:
Applied overhead per unit = 0.76 * $6.16 = $4.67
We know that the ending inventory of finished goods has a total cost of $9,100 and consists of 700 units. Therefore, the total direct materials cost for these 700 units can be calculated as:
Total direct materials cost = Total cost - Total overhead - Total direct labor cost
Total overhead = Applied overhead per unit * Number of units = $4.67 * 700 = $3,269
Total direct labor cost = Direct labor cost per unit * Number of units = $6.16 * 700 = $4,312
Total direct materials cost = $9,100 - $3,116 - $4,312 = $1,884
Therefore, the direct materials cost incurred in producing these units is $1,884.
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an increase in the price of strawberries causes strawberry jam producers and consumers to expect that the price of strawberry jam will rise in the future. in the market for strawberry jam, both the equilibrium price and the equilibrium quantity increase. it must be the case that:
It must be the case that More strawberry jam was consumed than there was available to satisfy demand as there was more demand than supply.
In economics, the relationship between the quantity of a good or service that producers want to sell at different prices and the quantity that consumers want to buy is known as supply and demand. It serves as the primary model for determining prices in economic theory. The interaction of supply and demand in a market determines the price of a good. The final price is known as the equilibrium price and signifies a compromise between the good's producers and customers. When a market is in equilibrium, the amount of a good that producers supply and consumers desire are equal. The market mechanism is the propensity to move towards equilibrium prices, and the resulting equilibrium between supply and demand is referred to as the market equilibrium.
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true or false? regulatory compliance means complying with an organization's own policies, audits, culture, and standards.
False, Organizational compliance refers to abiding by the rules, procedures, culture, and standards of the organization.
Regulatory compliance—what do you mean?Compliance refers to adhering to a specification, regulation, standard, or legal requirement. The deterrence theory, which states that punishing a behavior would diminish violations by the offender (specific deterrence) and others, has traditionally been used to explain compliance (general deterrence).
What exactly is a company?An organization is a group of individuals working together to achieve predetermined goals. It can be viewed as a social structure that includes all formally recognized human interactions. The organization includes task alignment with respect to the company's ultimate aim and the division of labor among personnel.
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average fixed cost increases as the quantity produced increases.T/F
As production volume rises, average fixed cost rises. False
How does the average variable cost change as production volume rises?For unit produced, the variable production cost is a fixed sum. Variable costs will increase as production volume and output do. the So, if fewer items are produced, the variable production costs will decrease.
Does the average fixed cost stay the same as output volume grows?As output rises, fixed cost stays the same. As a result, average fixed costs fall as output levels rise. Overall cost, which by definition includes information on factor pricing and technology, displays the cost the variable inputs used in the manufacturing process.
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Country m hopes to encourage economic growth by:_____.a. investing in education to reduce unemployment and increase production. b. new technologies to produce goods that are in great demand. c. resources that can be traded with other nations. d. research to develop goods that can be sold on a global scale.
Country m hopes to encourage economic growth by investing in education to reduce unemployment and increase production.
Option A. is correct.
Education is essential for a strong economy, as it enables individuals to acquire the skills and knowledge necessary to participate in the workforce and contribute to the economy.
Additionally, investing in education can help to reduce unemployment, as individuals with higher levels of education are more likely to be employed.
This can result in increased production, as more individuals are able to contribute to the economy.
Furthermore, investing in education can also help to create new technologies and products, which can further boost economic growth.
Thus, investing in education to reduce unemployment and increase production is an effective way for Country M to encourage economic growth.
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a company that can outperform other organizations due to its ability to provide its goods and services more efficiently and effectively is said to have a .multiple choice question.learning organizationcompetitive advantagestrategic disadvantagecustomer service perspective
A competitive advantage is a set of unique capabilities or resources that allows a company to provide better value to customers than its competitors, resulting in a higher market share, increased profitability, or other benefits.
A company that can outperform other organizations due to its ability to provide its goods and services more efficiently and effectively is said to have a competitive advantage.
A competitive advantage is a set of unique capabilities or resources that allows a company to provide better value to customers than its competitors, resulting in a higher market share, increased profitability, or other benefits. It could be achieved through a variety of means such as lower production costs, superior quality, faster delivery, better customer service, or innovative products and services.
A learning organization is a company that continuously improves its performance and adapts to changes in its environment through the learning and development of its employees. It is not directly related to a company's ability to outperform its competitors.
A strategic disadvantage is a condition or circumstance that puts a company at a competitive disadvantage or makes it less likely to succeed in the marketplace.
A customer service perspective is a focus on providing high-quality customer service as a means of building customer loyalty, retention, and satisfaction. While this can be an important component of a company's competitive advantage, it is not the sole factor that determines a company's ability to outperform its competitors.
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a state a consumer was in a traffic accident with a state b driver. the state a consumer's car burst into flames, causing horrific injuries to the consumer. the state a consumer believes that his injuries were caused by
B Yes, because the State B driver's claim is a proper cross-claim and is within the court's supplemental jurisdiction.
The State B maker is liable for the State B driver's tort claim. Due to the fact that the driver's claim comes from the same transaction or event as the consumer's initial claim, it is a valid cross-claim. Therefore, (D) is untrue. (A) is inappropriate since any claims made by the State B driver against the manufacturer must be based on the same event or transaction. (C) is wrong because the State B driver's claim and the State A consumer's claim originate from the same core of operational facts and so come under the federal court's additional jurisdiction.
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complete question:
A State A consumer was in a traffic accident with a State B driver. The State A consumer's car burst into flames, causing horrific injuries to the consumer. The State A consumer believes that his injuries were caused by both the State B driver's negligence and design defects in his own car. The State A consumer thus filed a tort action for damages against both the State B driver and the manufacturer of the car. The manufacturer is also a citizen of State B. The State B driver was also burned in the accident and believes that manufacturing and design defects in the State A consumer's car also caused his burns.
Can the State B driver assert his tort claim against the State B manufacturer in the pending action asserted by the State A consumer?
A Yes, because the State B driver and State B manufacturer are already parties to the State A consumer's action.
B Yes, because the State B driver's claim is a proper cross-claim and is within the court's supplemental jurisdiction.
C No, because the State B driver's tort claim against the State B manufacturer is not between citizens of different states.
D No, because the State B driver's claim is not a proper cross-claim.
