Becker Updates

Question 1

Generally, a disclosed principal will be liable to third parties for its agent’s unauthorized misrepresentations if the agent is an:
Independent
Employee Contractor
a. Yes Yes
b. Yes No
c. No Yes
d. No No

Answer 1

Choice “b” is correct. An employer is liable for torts of employees committed within the scope of employment. Employers are generally not liable for the torts of independent contractors.