MrSnarey Devised and Conducted a Fraudulent Scheme While Working as an Agent

question 86

Multiple Choice

Mr.Snarey devised and conducted a fraudulent scheme while working as an agent of Mutual Life.What would the likely result be?

• A)Neither the agent nor the company could be liable,because Snarey was only an agent,and the company had no actual knowledge.
• B)Only the agent was liable,because the action taken was dishonest and therefore outside the scope of the agency relationship.
• C)Since Snarey was an agent with authority to enter into this general type of transaction,the company was vicariously liable for his conduct.
• D)The company could be liable only if it were shown Snarey was an employee acting under the direction of a superior.
• E)The doctrine of caveat emptor was applied.

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