Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose you are a member of the board of directors of a trucking company that operates tank trucks carrying bulk liquids between Florida and New

Suppose you are a member of the board of directors of a trucking company that operates tank trucks carrying bulk liquids between Florida and New York. In all the states along the route between Florida and New York except Pennsylvania, trucks are permitted a maximum weight of up to 60,000 pounds (including the equipment), but in Pennsylvania the maximum weight is 45,000 pounds. The penalty for violation of the maximum weight law is a fine of $200. Under Pennsylvania law it is plain that the fine is "penal"; it is not regarded as a type of toll or use tax. The risk of being caught and fined on any one trip is about 20 percent. The practice of your corporation and, as far as you are aware, of all your competitors, is to ignore the 45,000 maximum weight law and treat the fines as a cost of doing business. The alternative is either to comply with the 45,000 pound limit along the entire route or to reduce the load at the border of Pennsylvania, carry the excess to the other border in another truck, and then load the excess back onto the through-route truck. The cost of either alternative would make it impossible to compete with other trucking firms and with individual truckers and with other forms of transportation without losing money. Moreover, compliance with the 45,000 limit would require carrying less than a full load and would increase safety hazards. You have just learned of these facts. What do you do?

Step by Step Solution

3.50 Rating (167 Votes )

There are 3 Steps involved in it

Step: 1

Answer Let us first analyze the economic aspect The penalty of violation of maximum weight law in Pe... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Legal Research Analysis and Writing

Authors: William H. Putman, Jennifer Albright

3rd edition

9781285415086, 1133591906, 1285415086, 978-1133591900

More Books

Students also viewed these Accounting questions

Question

List seven ways to challenge an argument based on case law.

Answered: 1 week ago

Question

What information is provided in each Sliplist?

Answered: 1 week ago