Desmond,obeying the instructions of his employer,Bigger Company,sells Harry a computer system that is not capable of being expanded.Harry is now suing Desmond asserting fraud,but Desmond defends that Harry did not request an expandable system.What responsibility if any,does Bigger Company owe Desmond?

A) Bigger has no responsibilities,since Desmond has a defense to fraud.
B) As Bigger's agent following instructions,Desmond is entitled to indemnification.
C) Bigger's only duty is to cooperate while Desmond defends the lawsuit.
D) Bigger's responsibility is to support Harry's lawsuit against Desmond.

Question

Jocelyn Funes · Accepted Answer

Final Answer : B, Explanation :  As Desmond was following the instructions of his employer, Bigger Company, he is entitled to indemnification. Bigger Company should bear the responsibility for any legal claims arising from the sale of the computer system as Desmond was acting as their agent.

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