River City Corporation Arranged to Have Han Vongphakham Negotiate Energy

River City Corporation arranged to have Han Vongphakham negotiate energy contracts on the company's behalf. In return for his services, Han was paid $25,000 plus royalties. Han purchased several contracts for River City. He told River City that he paid more for the contracts than he actually did. Through various tricks, Han kept much of the money River City gave him to pay for the contracts, and used it for personal gain.​

A) Because Han breached his duty of loyalty to River City, they owe him no royalty.
B) From the facts it is clear Han was an independent contractor with no duty of loyalty to River City.
C) The doctrine of respondeat inferior applies to this situation and thus Han can keep his $25,000 and one-half the royalty.
D) If River City is engaged in interstate commerce, EEOC regulations will provide the rules to determine the relative rights in this situation.