Miriam Worked as a Financial Advisor with Acme Investments Inc

question 64

Multiple Choice

Miriam worked as a financial advisor with Acme Investments Inc. Over the period of several years, she stole millions of dollars from the company's clients. She did so by means of a complex and carefully planned series of fraudulent transfers. The company had no reason to believe that anything was wrong until the police arrived one day and explained the entire situation to Acme's president. Which of the following statements is TRUE?

• A) If Miriam holds a liability insurance policy, she will be protected from liability, even though she deliberately defrauded the company's customers, as long as she is sued for a tort rather than prosecuted for a crime.
• B) While Acme may have liability insurance against personal liability, it cannot have liability insurance against vicarious liability.
• C) If the company's clients sue Miriam in tort law, she may be punished by a term in prison.
• D) Acme may be held vicariously liable even though it had no reason to believe that Miriam was acting improperly.
• E) The doctrine of vicarious liability means that Acme has a duty to defend Miriam if she is sued in tort.

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Definitions:

Free-Rider Phenomenon

The Free-Rider Phenomenon occurs when individuals benefit from resources, goods, or services without directly paying for them or contributing to their provision.

Informational Benefit

Informational benefit refers to the advantageous knowledge or insights gained from accessing and processing information.

Newsletter

A printed or electronic report containing news and information of interest to a specific group, often distributed regularly.

Interest Groups

Organizations that attempt to influence public policy and government decisions in favor of their members or beliefs.