4. Liability (Torts)

Question 1

Is Principal’s liability dependent on Agent’s liability?

Answer 1

Yes (joint and several liability)

Question 2

What is required for Employer-Employee relationship (Respondeat Superior)?

Answer 2

Employer’s right to control

• Employee to further Principal’s business
• Employee lacks skill/tool/customs
• Employee working on long/indefinite basis
• Employee earns on-time compensation

TP estoppel

Independent contractor

• Engages in inherently dangerous activity
• Given non-delegable duty
• Incompetent (Employer’s knowing/negligent hiring - Employer liable for own act, NOT IC’s act)

Question 3

What is required for Employee acting within his scope of employment (Respondeat Superior)?

Answer 3

Act similar/Incidental to authorised job
- NOT criminal act

Detour/Small deviation

• NOT frolic
• NOT car ownership

Motivated to serve Employer
- NOT Employee’s passenger invitation alone (outside scope of employment)

Ratified act

Intentional torts (generally NO)

• Natural incident
• Promoting Employee’s business
• Natural hostilities in Employee’s work

Question 4

What is required for apparent authority?

Answer 4

1) Agent deals on Principal’s behalf

2) Agent committed/concealed tort