Question

Two general contractor firms, Atlantic Builders and North West Mechanical, form a joint venture for the purposes of completing a large construction job. They are collaborating on all phases of the project. An Atlantic Builders’ employee operating a crane accidentally drops a steal beam onto a car parked near the construction site. Who is liable for the damage to the car?

A) The joint venture only.
B) The joint venture and Atlantic Builders have joint and several liability.
C) Atlantic Builders only.
D) Atlantic Builders and North West Mechanical are both liable.

Answer 1

The correct answer is D) Atlantic Builders and North West Mechanical are both liable.

Step-by-step explanation:

As a general rule, consortia and temporary unions are not responsible for the taxes derived from the execution of the respective contract; those responsible are the consortiums or members of the temporary union, who respond jointly and severally.

In any case, any tax obligation derived from the contract executed by the consortium or temporary union must be jointly and severally assumed by the members of the cosorio or temporary union.

Regarding the tax penalties, there is a small difference between the consortium and the temporary union responsibility, since in the case of the temporary union, the penalties for the breach of the tax obligations, must be assumed according to the participation that has One of its members, while in the consortium, all its members respond jointly and severally for the sanctions without considering the individual amount of participation in the contract or business.