A Manager Hires an Agent to Obtain a License to Build

question 7

Multiple Choice

A manager hires an agent to obtain a license to build a warehouse in an industrial district. The agent was caught offering a bribe to a government official for issue of the license. Which of the following describes the manager's liabilities?

• A) The manager is not liable since the use of an agent absolves him of any responsibility.
• B) The manager is liable since the agent used part of his fees for bribery, although the manager was unaware of the agent's intentions.
• C) The manager is not liable if the agent can prove that extortion, rather than bribery, took place.
• D) The manager is liable if he was aware of the fact that part of the agent's fee would be used as a bribe.
• E) The manager is liable only if the act of building the warehouse at the given location is illegal.

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