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Gold Star Investment Inc Is in the Business of Providing

Question 41

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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 incompetence and negligence, 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) Jennifer will not be entitled to sue Brad and Angie.
B) Gold Star will have to compensate Brad and Angie if Jennifer collects damages from those two individuals.
C) Gold Star will have to pay damages to Jennifer only if Brad and Angie cannot afford to do so.
D) Gold Star must hold a liability insurance policy.
E) If Gold Star is held vicariously liable on the basis of Brad and Angie's torts, it may be entitled to hold Brad and Angie responsible for the damages that it paid to Jennifer.

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