Asked by Matthew Vulku on Jul 12, 2024
Verified
A principal will not be liable to a third party for a tort committed by an agent:
A) unless the principal was legally nonexistent.
B) unless the tort was committed within the scope of the agency relationship.
C) if the agency agreement limits the principal's liability for the agent's tort.
D) if the tort is also regarded as a criminal act.
Scope Of The Agency Relationship
The range of actions and decision-making authority granted to an agent by their principal.
Principal's Liability
Legal responsibility of the principal for the acts of their agent that are carried out within the scope of the agent's authority.
Tort
A legal term for a civil wrong or breach of duty to another person, resulting in loss or harm, and subject to compensation or legal remedy.
- Comprehend the vital importance of the scope of employment in establishing liability and the influence of intentional acts on this scope.
Verified Answer
BM
Bruna MansurJul 13, 2024
Final Answer :
B
Explanation :
A principal who is an employer is liable for torts committed by agents (1)who are employees and (2)who commit the tort while acting within the scope of their employment.
Learning Objectives
- Comprehend the vital importance of the scope of employment in establishing liability and the influence of intentional acts on this scope.