Employers can be held liable for damages caused by a notary's misconduct if they directed or approved the act. This statement is:

• A. Not sure
• B. False
• C. Only if the notary is licensed in another state
• D. True

Answer: (D)

When a business directs or approves a notary act, the notary is acting as the employer’s agent. Under agency law, the employer can be held responsible for damages caused by the acts of its employees or agents when those acts are performed within the scope of employment or with the employer’s authorization. So, if a notary commits misconduct while notarizing at the employer’s direction or with the employer’s approval, the employer can be liable for the resulting damages. This is why the statement is true. If the notary acts completely independently without employer direction, the employer isn’t automatically liable for those misconducts, though the notary may face the personal consequences.