Alfred Owned Sparkle Industries and Was Extremely Busy Running the Business

Multiple Choice

Alfred owned Sparkle Industries and was extremely busy running the business. To lessen his burden, he hired Mary as his accountant and gave her authority to sign on his behalf all checks related to the operation of the business. One afternoon Mary signed a Sparkle Industries check to pay for a 10 day cruise on the Nile River for her. Alfred found out and was furious. Which statement below is correct?

A) Since Alfred allowed Mary to sign checks it was solely his responsibility to ensure that she was abiding by his wishes.
B) Alfred will be responsible for all checks signed by Mary as she is his agent.
C) Since Mary signed a check for her personal benefit which was clearly outside the authority Alfred delegated to her, her signature is invalid.
D) Alfred will face criminal prosecution for negligently delegating authority.