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Vicarious Liability deals with cases where one person is liable for the acts of others. In the field of Torts it is considered to be an exception to the general rule that a person is liable for his own acts only. ... So a master is liable for the acts of his servant if the act is done in the course of employment. Employers can be held legally responsible for acts of discrimination or harassment that occur in the workplace or in connection with a person's employment. This is known as vicarious liability.
In order to be vicariously liable, there must be a requisite relationship between the defendant and the tortfeasor, which could be examined by three tests: Control test, Organisation test, and sufficient relationship test. The modern test of vicarious liability consists of two steps. For a party to be held vicariously liable for a tort there must be: An employer-employee relationship between that party and the tortfeasor. A sufficiently close connection between that employment and the tort committed.
Vicarious can be defined as „a concept used to impose strict liability on a person who does not have primary liability, that is, not at fault?. Vicarious liability is not a tort. Literally, it means that one person is liable for the torts of another. The employer is liable for the torts of his employee.
When an employee commits a tort in the course of performance of his duty, the liability of the employer arises for such wrongful act. The employer will be liable because of the employee-employer relationship between the two. Both can be held liable for the same wrongful act. The “reasonable person” is a hypothetical individual who approaches any situation with the appropriate amount of caution and then sensibly takes action. It is a standard created to provide courts and juries with an objective test that can be used in deciding whether a person's actions constitute negligence.
SITUATION: Maria was an old widow who opened an account with the Indian Overseas Bank, whereby she would deposit Rs. 5 everyday in the bank. Stephen was her neighbour who used to collect the amount and deposit them in the bank. Stephen would get a small commission from the bank for the money deposited. One day it was discovered that Stephen who had not deposited the money for more than three months, had vanished with the amount. Maria filed a suit against the Bank.
Bank would not be liable because Stephen was not an employee of the bank.
Bank would not be liable for the failure of Maria to check the balance in her account
Bank would be liable because Stephen was paid commission by the bank for doing its work
None of the above.
By: Parvesh Mehta ProfileResourcesReport error
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