Carl, a credit officer for U Bank, evaluates and approves extensions of credit to bank

clients. He can access nonpublic information about clients' earnings, performance,

acquisitions, and business plans. $U$ Bank caters to a very wealthy clientele and Carl

frequently travels to meet potential clients for lunch dates at fancy restaurants.

Carl contracts privately with Rubin, an independent accountant, to sell securities based

on bank client information. Rubin believes Carl is brilliant and has a "nose for business."

Rubin trades securities of more than $10$ different companies anld both men profit more

than $$5$ million over five years.

On the way to a business meeting with a potential new bank client, Carl stops at Rubin's

house to discuss business dealings and have a few drinks. Carl leaves Rubin's house

drunk and is killed when his car strikes a tree. Carl's family sues U Bank for Carl's death.

Rubin, discovering the investment scheme perpetrated by Carl, sues $U$ Bank when he is

arrested for violation of the Securities Exchange Act of $1934.$

Instructions

Write a one$-$page paper answering the questions based on the facts of the scenario and

your text readings:

Under what agency law doctrine might the bank be liable for Carl's death and

what is the key factor for making this determination?

Is U Bank liable to Rubin and is he guilty of violating the Securities Exchange

Act of $1934?$ Explain.