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Vicarious Liability

What Vicarious Liability Is

  • 4 things to know
  • Paper 2

Overview

Recall questions on the meaning of vicarious liability, why it is secondary, the first requirement and how it secures compensation.

What you need to know

Answer each one before you reveal it.

Your recallNot started
Key term

What is the first requirement that must be established for vicarious liability to arise?

Key term

What does the control test ask when determining employment status?

Key term

Under the economic reality test, what does ownership of tools indicate?

Process

How does vicarious liability spread the cost of accidents, what is the traditional employment-status distinction, and what does the control test ask?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    What is vicarious liability?

    Model answer

    Vicarious liability is a form of strict liability where one party is held legally responsible for the torts committed by another party, typically an employer for the acts of an employee.

  2. 2

    Why is vicarious liability described as secondary liability?

    Model answer

    Because the employer is held liable even though they have committed no wrong themselves; their liability derives from the wrongdoing of another person (the employee).

  3. 3

    What is the first requirement that must be established for vicarious liability to arise?

    Model answer

    The tortfeasor must be an employee, or in a relationship akin to employment.

  4. 4

    How does vicarious liability help ensure victims can obtain compensation?

    Model answer

    It ensures victims have a solvent defendant to claim against, as employers typically have greater financial resources or insurance than individual employees.

  5. 5

    Explain how vicarious liability achieves loss distribution across society.

    Model answer

    The cost of accidents is spread across society through the pricing of goods and services, as employers factor potential liability costs into their business operations.

  6. 6

    How does vicarious liability incentivise employers to reduce tortious conduct?

    Model answer

    It encourages employers to maintain high standards of employee selection, training and supervision to minimise the risk of employees committing torts.

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