Romanelli Inc. Case Summary

This case involves three parties Romanelli Inc. as principal, Schor accountant and financial adviser as agent and Citibank as a third party. It must be decided whom is liability for actions made by Schor. This case addresses the following legal issues; Authority, Authority branch of agency law, Criminal Law, Third Party Liability, and Vicariously Tort Liability.

Relevant social issues involved. Standards must be in place to aid society. There must be standards that prevent an agent from negating responsibility for tort liability simply, because he or she was acting on someone else behalf. There must be safe guards for a principle to recover loss due to negligence or criminal acts. The law offer at least two remedies for Romanelli remuneration against Schor; criminal proceeding and Tort liabilities laws. Embezzlement Sec. 174. “A person who as the agent… converts to his or her own use, … without the consent of his or her principal, any money or other personal property of his or her principal … that is under his or her charge or control by virtue of his or her being an agent…is guilty of embezzlement”.

Relevant business issues involved. Romanelli argued that Schor was acting outside his scope of authority. This is not a convincing agreement. The …show more content…
The principle agent relationship (employer / employee) is directly derivative from the common law master and servant relationship. The “Master and servant” relationship provide legally standing for determining liability. In the scripture it is the servant's duty to do his work in a faithful manner, however under the laws of agency the principals is liable for authorized acts or unauthorized acts of agents. However the principal can still look to find relief under Tort Liability. The agent is personally liable for his wrongful acts and must reimburse the principal for any damages the principal was forced to pay, as long as the principal did not authorize the wrongful