The president of Hi-Glow Cosmetics sends his top chemist to Hi-Glow's competitor's labs to steal its formula for shiny lipstick.The chemist gets caught and is sent to jail.Can Hi-Glow be found to be criminally liable?

Question

Quizplus · Accepted Answer

The president of Hi-Glow Cosmetics authorized the chemist to steal the formula, making the company criminally liable for the chemist's actions. This is known as the theory of vicarious liability, where a company can be held responsible for the wrongful acts of its employees if those acts were taken in the course of their employment and with the company's authorization. Therefore, option B is the best choice. Option A is incorrect because ultra vires pertains to actions outside a company's scope of authorized activities, not criminal liability. Option C is incorrect because the board of directors cannot shield a company from criminal actions committed with its authorization. Option D is incorrect because although a corporation cannot go to jail, it can still face criminal liability and penalties.

The President of Hi-Glow Cosmetics Sends His Top Chemist to Hi-Glow's