Carlos is an investment broker, operating as a sole proprietor - 8130

Solution Posted by
Solution Detail
Price: $1.25
  • From: ,
  • Posted on: Tue 17 Apr, 2012
  • Request id: None
  • Purchased: 0 time(s)
  • Average Rating: No rating
Request Description

Carlos is an investment broker, operating as a sole proprietor. William is his employee. Juanita, a new client, gives William $1,000,000 in cash to invest for her, and William gives her a receipt. Instead of investing the money, William takes the $1,000,000 and leaves the country. Carlos learns of the transaction for the first time when Juanita appears at the office a month later to discuss the allocation of her investments, and shows him the receipt signed by William. Juanita is upset to learn that Carlos does not have her money, and tells him she is going to sue. What will be the outcome of Juanita’s suit against Carlos? 

 

A.   Juanita will lose the case because she cannot find William to serve him with a lawsuit.

B.   Juanita will recover a judgment against Carlos for the entire amount.

C.   Juanita will recover a judgment against Carlos for half the missing money.

 

D.  Juanita will lose the case because was not informed of the transaction.

 
Solution Description

Carlos is an investment broker, operating as a sole proprietor. William is his employee. Juanita, a new client, gives William $1,000,000 in cash to invest for her, and William gives her a receipt. Instead of investing the