Florence Industries Ltd, based in Alberta, manufactures household cleaning products. Its president, Ebenezer, entered into negotiations with Second Class Disposal Services Inc for a contract to dispose of its waste. Second Class promised Ebenezer that its disposal services, which were much less expensive than those of other disposal businesses, met all legal requirements. Ebenezer was satisfied by these assurances and signed the contract without further investigating Second Class or its track record.

Three months into the contract, Florence Industries was accused of dumping industrial waste into the Bow River, contrary to the Alberta Water Resources Act, and Ebenezer was accused of authorizing the dumping. This statute provides that an accused who exercised reasonable care to prevent the corporation from disposing of the waste can avoid liability.

Assuming that industrial waste was dumped into the Bow River on behalf of Florence Industries by Second Class, discuss whether Ebenezer or Florence Industries can be held liable under the Act.