Question

Daniel is employed by Bob's Boatyard as a collection agent. Daniel was to repossess a boat owned by Anya for missed payments for a dock rental. In fact, Anya was NOT late, but Bob's bookkeeper made an error in entering payments. Daniel repossessed the boat. Why is it that Daniel and Bob's Boatyard are jointly and severally liable?

a. Both parties have an obligation that binds.
b. Daniel is acting as an independent agent.
c. Both parties are economically responsible for the tort.
d. Joint and several liability relieves Daniel from his duty.

Answer 1

The correct answer is a. Both parties have an obligation that binds. Joint and several liability applies when multiple parties are held responsible for the same obligation, and each party can be held liable for the entire debt.

Step-by-step explanation:

The correct answer is a. Both parties have an obligation that binds.

Joint and several liability applies when multiple parties are held responsible for the same obligation, and each party can be held liable for the entire obligation or debt. In this case, both Daniel, as the collection agent, and Bob's Boatyard, as his employer, have an obligation to ensure that repossession is done correctly and lawfully. Even though Daniel may have acted based on incorrect information provided by Bob's bookkeeper, both parties are still responsible because the obligation to repossess the boat was binding.