1. Which of the following is true of a principal's duty of indemnity?

A. The principal must indemnify the agent for tort damages resulting from authorized conduct that the agent did not believe was tortious.

B. The principal does not have to indemnify the agent for authorized payments made on the principal's behalf as the payments were undertaken in the course of the agent's work.

C. The principal is required to indemnify an agent for losses resulting from unauthorized acts so long as the principal did not benefit from such behavior.

D. The principal is required to indemnify an agent even for losses resulting from the agent's negligence.

E. All of the above are correct.

2. Giganto, Inc. (Giganto) has several manufacturing plants throughout the United States. All its plants are unionized. Alvin, an avid follower of his religion, works for Giganto. Because he lacks seniority in his job, he was assigned to the evening shift on the production line, which required him to work on Saturday nights. Alvin’s religion prohibited him from working from sundown Saturday until sundown Saturday, so he failed to show up for work at those times. Eventually, Alvin was fired for his continuing Saturday night absences from work. Accommodating Alvin would have required Giganto to use a floater to replace Alvin every Saturday night. This would mean that Giganto would have to forgo using the floater elsewhere or hire another floater. In addition, more repairs and lower efficiency are likely when a floater is used on the line. Alvin sued Giganto, claiming religious discrimination. Giganto defended claiming that Alvin was not fired for religious discrimination but for absenteeism. Who will win the lawsuit?

A. Giganto will win because accommodating Alvin would be an undue hardship.

B. Alvin will win because he is the subject of religious discrimination.

C. Giganto will win because it has not exhibited religious discrimination.

D. Giganto will win because there is no religious issue.

E. None of the above answers is correct.