Principal's liability to third parties

Question 1

Respondeat superior doctrine

Answer 1

Generally, Principal (employer) is vicariously liable for Agent’s torts where Principal controls Agent (employee) and Agent’s actions are within the scope of employment

Liability of the employer is in addition to, not instead of, the employee’s liability (employer and employee are joint and severally liable)

Question 2

Vicarious liability for non-employee torts

Answer 2

Principal is not generally vicariously liable for torts of non-employees

Exception: Principal can be vicariously liable to third parties for torts committed by a non-employee where Agency acts with APPARENT authority

Question 3

Scope of employment

Answer 3

Scope of Employment = (1) Tasks assigned by Employer, or (2) engaging in conduct subject to Employer’s control

Question 4

Factors for scope of employment analysis

Answer 4

The extent to which the conduct:

o is the kind of work Employee was hired to perform
o occurred within the time and space authorized by Employer
o was intended to serve Employer’s interests

Question 5

Frolic and detour rule

Answer 5

Frolic: Employer not liable if employee substantially deviates from authorized route

Detour: Employer liable if employee deviation is slight

Question 6

Principal liability for agent intentional torts

Answer 6

Employers NOT generally liable for the intentional torts of an employee UNLESS the intentional tort is accomplished:

§ in the course of doing the employer’s work, and
§ for the purpose of accomplishing such work

Question 7

Previous instruction rule for intentional torts

Answer 7

No defense to employer that had previously instructed employee not to use force in the performance of employee’s duties

Question 8

Principal tort liability and independent contractors

Answer 8

Employer is NOT generally liable for damages from an independent contractor’s tortious conduct

Question 9

Principal liability for principal’s negligence

Answer 9

Principal is liable for harm caused by his negligence in selecting, training, retaining, supervising, or otherwise controlling Agent

Question 10

Principal’s contractual liability to third parties

Answer 10

When Agent Acts with Actual Authority
When Agent Acts with Apparent Authority

Question 11

P contractual liability when actual authority

Answer 11

Principal is liable on contracts when Agent acts with actual authority (express or implied)

Principal is liable on contracts even when Agent’s authority was retroactively granted (agency created by ratification)

Question 12

P contractual liability for actual authority if P undisclosed

Answer 12

If Principal is undisclosed –> liable if, after the transaction, the third party discovers
Principal’s identity

Question 13

P contractual liability when apparent authority

Answer 13

A party will be liable on a contract as if it were Principal to an Agent who acted with actual authority if that party’s words, acts, or failures to act cause the third party to reasonably but mistakenly believe that another acts as an authorized agent

Question 14

Implied warranty of authority doctrine

Answer 14

If Principal is bound to a third party on the basis of
Agent’s apparent authority, Agent is not liable to the third party on the agent’s implied warranty of authority, although the agent acted without actual authority