James Keller Was an Employee at Radical Boards, Inc

James Keller was an employee at Radical Boards, Inc.  Radical Boards is a surf and skateboard shop that also sells clothing.  While employed there, Radical Board's principal shareholder discovered that Keller had created peep holes in the shop's dressing rooms.  When confronted with the peep holes, Keller denied ever using them and indicated that they were there to prevent shoplifting.  The shop manager was told to fire Keller.  Shortly after Keller left, a 16-year-old and her mother filed suit because the teen learned, through conversations with Keller, that he had seen her in the dressing room while she was trying on swimming suits.  Keller was able to describe her not-generally-seen birthmarks to her.  Keller has applied for a position at a summer camp for girls, ages 14-18.  The camp director had called Radical Board's manager and asked for a reference on Keller. Radical Boards:

A) has no liability to the girls or their parents.
B) enjoys an employer privilege and immunity against such litigation.
C) might be held liable for the negligent failure to disclose Keller's history.
D) has no liability for the subsequent acts of terminated employees.
E) None of the above