Question

A manager hires an agent to obtain a license to build a warehouse in an industrial district. The agent gets caught offering a bribe to a government official for issue of the license. Which of the following describes the manager's liabilities?
A. The manager is not liable since the use of an agent absolves him of any responsibility.
B. The manager is liable since the agent used part of his fees for bribery, although the manager was unaware of the agent's intentions.
C. The manager is not liable if the agent can prove that extortion, rather than bribery, took place.
D. The manager is liable if he was aware of the fact that part of the agent's fee will be used as a bribe.
E. The manager is liable only if the act of building the warehouse at the given location is illegal.

Answer 1

Answer: The correct answer is D:)