Weber has been arrested four times for, and convicted twice of fraud. He is hired as a teller by Port Alice State Bank. He consistently underpays customers making large withdrawals, and keeps the unpaid funds for himself. When a customer attempts later to recover her unpaid funds from Weber, she discovers that Weber has disappeared. Port Alice State Bank will

Question

Quizplus · Accepted Answer

Port Alice State Bank can be held liable for negligent hiring of Weber, as his criminal history of fraud should have been discovered during the bank's pre-employment screening process. Furthermore, the bank is responsible for the actions of its employees while they are acting within the scope of their employment, which includes the teller's wrongful conduct towards customers' withdrawals. Although Weber's absence may make recovery of the stolen funds difficult, this does not relieve the bank of its liability.

Weber Has Been Arrested Four Times For, and Convicted Twice