Jennifer Hoffman, a New York resident, took her cell phone to a store owned by R&K Trading, Inc. for repairs. R&K is incorporated in the state of New York. Later, Hoffman filed a lawsuit in a New York federal district court against R&K (under diversity jurisdiction). Hoffman sought to recover $1,000,000.00 in damages from R&K for a variety of torts, including infliction of emotional distress and negligent hiring and supervision. She alleged that an R&K employee, Keith Press, had examined her phone in a backroom, accessed private photos of her stored on her phone, and disseminated (shared) the photos to the public. Hoffman testified that "after the incident, she learned from another R&K employee that personal information and pictures had been removed from the phones of other customers." Answer the following questions:

1. Can R&K be held liable for the torts of its employees? Explain.

1. Would a federal district court have diversity jurisdiction over Hoffman's lawsuit? Why or why not?