ISSUE: Under what principle might Smart Inventions be liable for Nokees fraud? Is Smart Inventions liable in his case?
DECISION: Under the respondeat superior doctrine, corporations are liable for crimes committed by its agents that are employed with the corporation. Smart Inventions is only liable under the circumstances that Nokee discussed the agreement under the scope of his employment.
REASON/SUPPORT: The respondeat superior doctrine is called upon because Nokees lied about the financial condition of the corporation and Nokee had the intent to further his business. Proof of him wanted to further his business is when he knowingly