In Edgewater Motels,Inc

Multiple Choice

In Edgewater Motels,Inc.v.A.J.Gatzke and Walgreen Company,Gatzke,an employee agent of Walgreen,while filling out expense reports under the scope of his employment,accidentally started a fire due to careless smoking,severely damaging the Edgewater Motel.With regard to the smoking,the court determined that:

A) defendant Walgreen has no liability because smoking had nothing to do with Gatzke's duties, so the fire was caused by an act outside the scope of his employment.
B) defendant Walgreen is liable only if it knew that Gatzke smoked and did not order him to stop or if it condoned or authorized smoking.
C) Walgreen is liable because the smoking occurred as Gatzke was performing his job and the slight deviation for his personal comfort was reasonable and was not a severe departure from his duties.
D) Walgreen is liable because it authorized Gatzke to rent the room and is therefore liable for any intentional or unintentional acts of its employee agent that result in harm to others.