Agency - Tort Liability of Agents & Principals Flashcards Preview

CPA - Regulation: Ethics & BLAW - Contracts > Agency - Tort Liability of Agents & Principals > Flashcards

Flashcards in Agency - Tort Liability of Agents & Principals Deck (11):

List the situations in which the principal has liability for the torts of his or her agent.

•Directs the tort;
•Failure to properly supervise;
•Negligent hiring and/or retention.


Define "independent contractor."

Agent who acts on behalf of a principal but who retains control over schedule and is not controlled daily by principal.


Describe the concept of respondeat superior.

"Let the master answer;" doctrine that holds principal liable, in certain circumstances, for the torts of the agent.


Define "scope of employment."

Measure for determining when a principal is held liable for the torts of an agent.


Describe vicarious (respondeat superior) liability.

Principals may be liable though blameless if:
1.Master-servant relationship exists; and
2.Agent acts within scope of employment.


Describe the master/servant relationship.

Type of relationship in which principal controls the activities of the agent; principal has liability for agent's torts in this relationship.


Who is liable for the agent's torts if the principal is at fault?

Liability of a principal.


Define "vicarious liability."

Liability of principal for torts of agent in master/servant relationship when torts are committed by agent with authorization of scope of employment.


Define "frolic and detour."

Acts and conduct by the agent outside the scope of employment that are done while the agent is supposed to be working for the principal.


List the forms of the principal-agent relationship.

1.Master-servant (principal usually liable for agent's torts);
2.Employer-independent contractor (principal usually not liable).


Does a principal have the right to control the method and manner of an agent's work?

1.Yes, if a master-servant relationship exists.
2.No, if an independent contractor relationship exists.