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Rea,an Officer with Sel-Mart Company,misappropriates the Firm's Property Through Fraud

Question 3

Multiple Choice

Rea,an officer with Sel-Mart Company,misappropriates the firm's property through fraud.Later,Rea and Sel-Mart agree to a mutual release of claims.Still later,Sel-Mart discovers Rea's fraud and files a suit to recover the misappropriated property.Most likely,the court will rule that Rea


A) breached her duty of loyalty by failing to disclose her misconduct.
B) is not liable due to Rea's duty to act in her own self-interest.
C) is not liable due to Sel-Mart's failure to timely discover the fraud.
D) is not liable due to the mutual release of claims.

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