BUS-L 201 Chapter Notes - Chapter 11: Dean Witter Reynolds, Contributory Negligence, Pension
Document Summary
Scope of employment - employee is performing an act assigned by their employer or is engaging in course of conduct subject to employer"s control. 1. economic burdens of employee torts are best borne by employers: employers can protect themselves with self-insuring or purchasing insurance, costs can often be passed on to the customer so economic risk is socialized. If it"s the principal"s fault that the agent committed a tort. When the agent acts within actual authority or the principal ratifies the agent"s conduct. Millan v. dean witter reynolds inc. - dean witter wasn"t vicariously liable because millan"s actions were way beyond his actions assigned. When harm results from the agent"s failure to perform duty of care (a nondelegable duty) or if the agent"s negligence to take precautions in conducting highly dangerous activity. Exculpatory clause - specified to the 3rd party that the agent only has authority to make representations in contract and those are the only binding ones.
