Final answer:
Yes, the company is liable for the actions of its employees. Employers are generally held responsible for the actions of their employees while they are acting within the scope of their employment.
Step-by-step explanation:
Yes, the company is liable for the actions of its employee, Bud Ferguson. Employers are generally held responsible for the actions of their employees while they are acting within the scope of their employment. This is known as vicarious liability or respondeat superior. It means that if an employee causes harm to someone or violates laws or regulations while performing their job duties, the company can be held legally responsible for their actions.
For example, in the case of Wells Fargo CEO John Stumpf, the company was held accountable for the fraudulent actions of its employees. Even though Stumpf may not have directly participated in the wrongdoing, as CEO, he was responsible for the actions of his subordinates.
It's important for companies to properly train and supervise their employees to minimize the risk of legal liability and ensure ethical behavior in the workplace.