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Austin Motors is located in Victoria, British Columbia, and is the only Austin dealer in western Canada. The dealership repairs and restores Austin vintage cars. Hal Irwin, the general manager, is considering changing insurance companies because of a disagreement with Len Legrew, an agent for the Dominion of Canada Insurance Company. Dominion is doubling Austin Motors' liability insurance cost for the next year. In discussing insurance coverage with you, a trusted business associate, Legrew brings up the subject of contingent liabilities.
Required
Problem 1: Write a memorandum to inform Austin Motors of specific contingent liabilities arising from the business. In your discussion, define a contingent liability.
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