1. A director of a company is knowingly negligent in allowing toxic effluent to flow into nearby rivers and streams allegedly causing an increase in the incidence of cancer in a nearby town. Which of the following provides a possible legal remedy for holding the director and/or the company directly liable for damages in tort?

a. identification theory

b. the doctrine of vicarious liability

c. the Canada Business Corporations Act

d. the doctrine of constructive notice

2. Which of the following is likely to apply regarding the expense associated with litigation if a director or officer of a company is sued for decisions made on behalf of the company?

a. It will be borne by the director or officer regardless of judgment.

b. It will be borne by the director or officer only if they are found liable.

c. It will be indemnified by the corporation regardless of judgment.

d. Directors and officers are immune from prosecution for their decisions.