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Vicarious Liability

The nature and purpose of vicarious liability

  • 2 things to know
  • Component 2

Overview

Recall questions on what vicarious liability is, how it serves compensation, deterrence and loss distribution, why employers are better placed to bear the cost, and criticisms that it imposes liability without fault and is hard to predict.

What you need to know

Answer each one before you reveal it.

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Key term

Why does the law impose vicarious liability?

Key term

Why might vicarious liability create difficulties for employers in predicting their legal exposure?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    What is vicarious liability?

    Model answer

    A form of strict liability where an employer is held liable for torts committed by their employees during the course of employment, even though the employer is not personally at fault.

  2. 2

    Why does vicarious liability benefit claimants in terms of obtaining compensation?

    Model answer

    It ensures claimants have a financially viable defendant who can satisfy any judgment.

  3. 3

    How does vicarious liability encourage employers to improve workplace practices?

    Model answer

    It encourages employers to maintain high standards of employee selection, training and supervision.

  4. 4

    What is a key criticism of vicarious liability relating to fault?

    Model answer

    It imposes liability on a party who is not personally at fault, which may be considered unjust.

  5. 5

    Why might vicarious liability create difficulties for employers in predicting their legal exposure?

    Model answer

    The boundaries of course of employment can be uncertain, creating unpredictability for employers.

  6. 6

    What competing interests does vicarious liability seek to balance?

    Model answer

    Compensating victims against the unfairness of holding blameless employers liable.

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AThe injury to the claimant's rights is small.
BThe injury is capable of being estimated in money.
CThe injury can be adequately compensated by a small payment.

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