What is an example of vicarious liability?

Study for the ICAEW ACA Certificate Level - Law Test. Dive into multiple choice questions and detailed explanations to prepare effectively. Get ready for your exam!

Vicarious liability is a legal principle where one party is held liable for the actions of another, typically arising in an employer-employee relationship. The correct answer illustrates this concept effectively, as it identifies a scenario where an employer can be held liable for the negligent or wrongful acts committed by an employee while performing their job duties.

In this context, when an employee acts within the scope of their employment, any damage or harm caused during that time can be attributed to the employer, who has the responsibility to ensure a safe working environment and train employees adequately. This principle helps ensure that those who are affected by an employee's actions have a means of seeking compensation from the employer, who is often in a better position to absorb the costs associated with such claims.

The other choices do not represent vicarious liability accurately. A company is not vicariously liable for its shareholders, as shareholders are not acting on behalf of the company in the same way an employee does. A landlord is not typically liable for the actions of a tenant unless the landlord has some direct involvement or control over those actions. Lastly, a manufacturer is usually liable for defects in their products but does not fall under the vicarious liability framework since they are not responsible for the actions of

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