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Gold Star Investment Inc Is in the Business of Providing

Question 6

Multiple Choice

Gold Star Investment Inc is in the business of providing financial advice to clients. Alan, who is the company's managing director, hires all of the company's staff. Unfortunately, he tends to hire not on the basis of formal qualifications, but rather on the basis of physical beauty. Consequently, among Gold Star's staff are Brad and Angie, a pair of exceptionally attractive, but dull- witted, financial advisors. When Jennifer retained Gold Star to provide investment advice, her file was assigned to Brad and Angie. Through sheer incompetence, the pair managed to lose virtually all of Jennifer's money on bad investments within a very short time. If Gold Star is held vicariously liable


A) it will have to pay damages to Jennifer only if Brad and Angie cannot afford to do so.
B) it may also be held personally liable to Jennifer if the court finds that the company committed a tort against her.
C) Jennifer will not be entitled to sue Brad and Angie.
D) it must hold a liability insurance policy.
E) Gold Star will have to compensate Brad and Angie if Jennifer collects damages from those two individuals.

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