Author Question: Did Varity's deception violate ERISA-imposed fiduciary duties?[br][br][b][color=#FA1639]Question ... (Read 61 times)

madam-professor · **on:** Jun 24, 2018

Did Varity's deception violate ERISA-imposed fiduciary duties?

Question 2

CPA QUESTION: To establish a cause of action based on strict liability in tort for personal injuries resulting from using a defective product, one of the elements the plaintiff must prove is that the seller (defendant)
a. Failed to exercise due care
b. Was in privity of contract with the plaintiff
c. Defectively designed the product
d. Was engaged in the business of selling the product

uniquea123 · **Reply #1 on:** Jun 24, 2018

Answer to Question 1

Yes. In misleading Howe and the other employees, Varity violated the fiduciary obligations that ERISA Section 404 imposes upon plan administrators. To participate knowingly and significantly in deceiving a plan's beneficiaries in order to save the employer money at the beneficiaries' expense, is not to act solely in the interest of the participants and beneficiaries.. There is no basis in the statute for any special interpretation that might insulate Varity from the legal consequences of the kind of conduct that often creates liability even among strangers.

Answer to Question 2

.D