Identification theory holds that a corporation is liable when the person committing the wrong is the corporation's directing mind.

Question

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Identification theory posits that a corporation can be held criminally or civilly liable for wrongful acts committed by individuals within the organization who are in positions of authority and act as the "directing mind and will" of the corporation, effectively embodying the company in their actions and decisions.

Identification Theory Holds That a Corporation Is Liable When the Person