In tort law, how is vicarious liability typically established?

Study for the CLEP Business Law Test. Engage with flashcards and multiple choice questions, each question has hints and explanations. Prepare effectively for your exam!

Vicarious liability is a legal principle that holds an employer or principal responsible for the negligent actions of an employee or agent when those actions occur in the course of their employment. This concept is based on the relationship between the employer and employee, emphasizing that an employer can bear liability for the actions of their employees.

The correct choice highlights that vicarious liability is established when an employee commits a tort while acting on behalf of the employer. This means that if an employee is performing duties related to their job, any wrongdoing or negligent act they commit that results in harm can expose the employer to liability. This principle reinforces the idea that businesses are responsible for the actions taken by their employees while they are engaged in work activities, as it reflects the requirement for employers to ensure safe practices and compliance in their operations.

The other options do not align with the doctrine of vicarious liability. For instance, an employee acting outside the scope of their employment or during personal time generally absolves the employer from liability, as those actions are not connected to their job responsibilities. Similarly, an employer being complicit in an employee's actions relates more to direct liability or participation in wrongdoing rather than vicarious liability.

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