CFE – Law — Question 16

In jurisdictions that allow for corporate criminal liability, which of the following is typically required for the corporation to be vicariously liable for the acts of one of its employees?

Answer options

• A. The employee was acting within the scope of their employment.
• B. Management was directly involved with the offense.
• C. Management knew of the underlying offense but did not correct it.
• D. The corporation had previous violations of a similar nature.

Correct answer: B

Explanation

The correct answer is B because for a corporation to be vicariously liable, there must be direct involvement of management in the criminal act. Options A, C, and D do not meet the requirement of direct involvement, as they focus on the employee's actions or management's knowledge, rather than their direct participation in the offense.