Law - vicarious liability key terms

Vicarious Liability

Vicarious Liability

A form of liability where a defendant is held responsible for a tort committed by a third party.

Purpose of Vicarious Liability

To ensure that victims of a tort can receive compensation for the injury or damage suffered.

Employer's Financial Position

Employers are typically in a better financial position to pay for damages compared to individual employees.

Two-Stage Test

A test to determine if one person can be held liable for a tort committed by another, involving an employment relationship and a close connection between the wrongful conduct and the acts allowed.

Control Test

One aspect of determining an employment relationship is the level of control the employer has over how the job is done.

Integration Test

Determines if a worker's role is fully integrated into the business, making them an employee, or if it's merely accessory work.

Economic Reality Test

Factors that must exist for a worker to be classified as an employee, including providing work for a wage and being subject to employer control.

"Akin to Employment" Test

Allows for vicarious liability in non-traditional employment relationships if the relationship is similar enough to employment.

Wrongful Act Connection

The wrongful act must be closely connected to the acts the tortfeasor was allowed to do in the course of employment.

Employee Negligence

If an employee acts negligently while performing their job, the employer can be vicariously liable.

Acting Against Orders

Employers can still be liable if an employee acts against orders in a way that furthers the employer's business.

Employee's "Frolic"

Employers are usually not liable if an employee causes harm while engaged in activities unrelated to their employment.

Criminal Actions

Employers can be liable for the crimes of an employee if there is a close connection between the crime and the authorized acts of the employee.