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Lucinda Is the Sole Shareholder and President of NailCo, a Corporation

Question 38

Multiple Choice

Lucinda is the sole shareholder and president of NailCo, a corporation that owns a chain of nail and pedicure salons in the lower mainland of British Columbia. She visits most of NailCo's outlets weekly. She comes to you, her lawyer, to confess that over the past few months she has witnessed several of NailCo's employees dump nail polish down the drain on a number of occasions. Lucinda is now concerned that she and NailCo may be liable for the environmental consequences of these actions even though she personally did nothing. You would most likely advise Lucinda that


A) she will have to comply with provincial legislation in future.
B) the corporation may be held liable for the environmental damage caused by its agents and employees in the course of their duties and that the corporation only has a due diligence defence if someone, like Lucinda, who is a directing mind and will of the corporation took reasonable steps to avoid the offence.
C) the company is not vicariously liable for the environmental damage caused by its agents and employees.
D) Lucinda should sue her employees.
E) she should do nothing. Lucinda is not answerable for the independent actions of her staff.

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