Which of the Following Is True Regarding Donnie's Statements That

Which of the following is true regarding Donnie's statements that he owes Karen nothing and that only Karen has the right to take legal action against the thief?

A) He is correct.
B) He is correct that he has no liability to Karen, but incorrect that only Karen may take legal action against the thief.
C) He is incorrect that he has no liability to Karen, but correct that only Karen may take legal action against the thief.
D) Only if he can identify the thief beyond a reasonable doubt is he correct that he has no further duties to Karen because only Karen has the right to take legal action against the thief at that point.
E) He is incorrect because he has the right to take legal action against the thief, and Donnie's conduct indicates that he has legal liability to Karen.