FOCL Practice Test

Who must authorize illegal conduct for a corporation to be criminally liable for a felony?

1. A low-level employee

2. A mid-level manager

3. A high managerial agent

4. Any member of the corporation

The correct answer is: A high managerial agent

A corporation can only be held criminally liable for a felony if the illegal conduct is authorized or committed by a high managerial agent. This is because high managerial agents have the authority to make decisions on behalf of the corporation and can thus be held accountable for actions that fall under their purview. Their knowledge, intent, and actions directly reflect the corporation's stance and operational decisions. In contrast, low-level employees and mid-level managers typically do not possess the same level of authority or decision-making power. While they may engage in unlawful acts, those actions do not automatically implicate the corporation unless they have been directed or approved by someone with higher authority. Simply being part of the organization does not confer the ability to bind the corporation to criminal liability. Therefore, the action or knowledge of a high managerial agent is crucial for establishing corporate criminal liability in a felony case.