Gold Star Investment Inc

question 41

Multiple Choice

Gold Star Investment Inc.is in the business of providing financial advice to clients.Alan,who is the company's managing director,hires all of the company's staff.Unfortunately,he tends to hire not on the basis of formal qualifications,but rather on the basis of physical beauty.Consequently,among Gold Star's staff are Brad and Angie,a pair of exceptionally attractive,but dull-witted,financial advisors.When Jennifer retained Gold Star to provide investment advice,her file was assigned to Brad and Angie.Through incompetence and negligence,the pair managed to lose virtually all of Jennifer's money on bad investments within a very short time.If Gold Star is held vicariously liable,

• A)Jennifer will not be entitled to sue Brad and Angie.
• B)Gold Star will have to compensate Brad and Angie if Jennifer collects damages from those two individuals.
• C)Gold Star will have to pay damages to Jennifer only if Brad and Angie cannot afford to do so.
• D)Gold Star must hold a liability insurance policy.
• E)Gold Star may also be held liable to Jennifer if the court finds that the company committed a tort against her or if the court finds that Gold Star is vicariously liable for the actions of Brad and Angie.

---

Definitions:

Punitive Purpose

Actions or penalties intended to punish an individual or entity, often used in legal and disciplinary contexts to deter undesirable behavior.

Minimum Standards

The least or lowest level of quality, performance, or achievement that is considered acceptable.

Childhood Trauma

Psychological distress occurring in a person due to adverse childhood experiences.

Mental Health Issues

A wide range of conditions affecting an individual’s mood, thinking, behavior, leading to distress or problems functioning in social, work or family activities.