James Keller was an employee at Radical Boards, Inc. Radical Boards is a surf and skateboard shop that also sells clothing. While employed there, Radical Board's principal shareholder discovered that Keller had created peep holes in the shop's dressing rooms. When confronted with the peep holes, Keller denied every using them and indicated that they were there to prevent shoplifting. The shop manager was told to fire Keller. Shortly after Keller left, a 16-year-old and her mother filed suit because the teen learned, through conversations with Keller, that he had seen her in the dressing room while she was trying on swimming suits. Keller was able to describe her not-generally-seen birthmarks to her.

Keller has applied for a position at a summer camp for girls, ages 14-18. The camp director had called Radical Board's manager and asked for a reference on Keller.

a.Radical Board has no liability if it simply verifies Keller's employment there.b.Radical Board has liability for its failure to prosecute Keller.c.Radical Board has no liability for the actions of employees beyond their job description.d.Radical Board enjoys a privilege against defamation if it discloses the peep hole story.e.none of the above