1. Romanelli argued that Schor was acting outside his scope of authority and thus no liability for the principals exists. Does that strike you as convincing?

2. What remedy does Romanelli have against Schor?

Romanelli hired Schor as an accountant and financial advisor for his business and personal matters. Schor suggested opening accounts at a new bank in order to obtain a lower interest rate on a line of credit. Romanelli, as principal of Romanelli, Inc., signed a business account application, corporate resolution, and signature card and gave it to Schor. Schor used this account to embezzle several hundred thousand dollars from Romanelli.