Who can be held liable under 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 refers to the legal principle where one party is held responsible for the actions or omissions of another party, typically in a context of an employment relationship. This principle primarily applies to employers and employees.

When an employee commits a wrongful act in the course of their employment, the employer can be held liable for that act, even though the employer may not have directly wronged anyone. This liability arises because the employer has a degree of control over the employee's actions and is responsible for ensuring that their employees adhere to appropriate standards of conduct while performing their job duties.

In this context, the relationship between an employer and an employee is crucial. The law recognizes this relationship as one in which the employer has an obligation to supervise and direct the employee's activities. Thus, if an employee causes harm to a third party while performing their job, the employer may be required to compensate the injured party, as the employee was acting within the scope of their employment at that time.

The other options do not reflect the principle of vicarious liability as they pertain to different legal responsibilities. For instance, an independent contractor operates as a separate entity and typically does not create vicarious liability for the entity that hired them. Similarly, personal debts

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