QUESTIDN 1 (7.5 marks) Acme Forwarding Company leased docking and warehouse facilities at a harbour. The lease gate the company exclusive use of the pier and the buildings, but held the company responsible for the maintenance and repair of the pier. Baker, a director of the Acme Forwarding Company, was responsible for the authorization of use of the pier by ships bringing cargo for off-loading at the company warehouse. The company policy was that only ships handling goods destined for the company warehouse were to use the pier. No authorization would be given unless the ship owners carried adequate insurance to cover any damage that might be done to the pier by careless docking. Baker also held an interest in a shipping firm that wished to offload a small cargo at the city where the Acme Forwarding Company pier was located. The shipping company, however, wished to place the cargo directly onto two trucks rather than use the facilities of Acme Forwarding Company. Balcer, with the intention of accommodating the shipping company, authorized the docking of the ship at the pier- 'When the ship attempted to dock with its cargo, it collided with the pier, causing extensiye damage to both the ship and the pier. Under the terms of the lease that Acme Forwarding Company had with the property owner, it was obliged to repair the pier. Acme Forwarding Company did, so at a cost of $12 . Then it looked to the shipping company to recover the cost of the damage caused by the ship. The shipping company, which had suffered damage to its only ship, was unable to pay for the damage to the pier. Its insurance would cover only a part of the $ 1213 {113i} cost of the pier repairs. When the directors of Acme Forwarding Company were informed of the shipping company's inability to pay for the damaged pier, they were also informed that Baker was a shareholder in the shipping company. Analyze the case and reach a decision