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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 the issue of the license. Which of the following describes the manager's liabilities?

A) No Liability
B) Limited Liability
C) Vicarious Liability
D) Strict Liability

1 Answer

2 votes

Final answer:

The manager's liabilities in this scenario can be described as vicarious liability. The manager can be held legally responsible for the agent's actions of offering a bribe to a government official, even if the manager was not directly involved or aware of the bribery attempt. Managers should exercise due diligence in selecting and monitoring agents to prevent illegal activities and potential liabilities.

Step-by-step explanation:

The manager's liabilities in this scenario can be described as vicarious liability. Vicarious liability refers to the legal responsibility that an employer has for the actions of their employees or agents, performed within the scope of their employment.

In this case, the manager hired the agent to obtain the license, and the agent's actions of offering a bribe can be considered within the scope of their employment for the manager.

This means that the manager can be held legally responsible for the agent's actions of offering a bribe to a government official, even if the manager was not directly involved in or aware of the bribery attempt. This is because the agent was acting on behalf of the manager in attempting to secure the license.

It is important for managers to exercise due diligence in selecting and monitoring their agents to prevent such illegal activities and potential liabilities.

User Patrick Stephansen
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