Kim is the director of operations at her company and hires an agent to obtain a license to build a warehouse in an industrial district. The agent gets caught offering a bribe to a government official for issue of the license. Which of the following describes Kim's liabilities?
A) The manager is not liable since the use of an agent absolves her of any responsibility.
B) The manager is liable since the agent used part of her fees for bribery, although the manager was unaware of the agent's intentions.
C) The manager is not liable if the agent can prove that extortion, rather than bribery, took place.
D) The manager is liable if she was aware of the fact that part of the agent's fee will be used as a bribe.
E) The manager is liable only if the act of building the warehouse at the given location is illegal.

Question

Quizplus · Accepted Answer

Kim is liable if she was aware that the agent intended to use part of the fee as a bribe, as this would imply her complicity in the illegal act.

Kim Is the Director of Operations at Her Company and Hires