of the most fundamental issues in business law involves the question of
when a company can be held liable for the acts of an individual person,
whether this involves a contractual obligation or a personal injury
(meaning a tort). Choose one
of the scenarios below and explain whether or not you think the
business is liable for the acts under the principles of agency law.
real estate agent hires a handful of local kids to do the landscaping
of homes that he is trying to sell. In addition to the general payment,
he reimburses them for the cost of gasoline for lawn mowers and other
equipment. While mowing a lawn, one of the kids loses control of a lawn
mower and it mows down a neighbors very expensive collection of lawn
a hurry to get his apartment complex painted, a homeowner hires three
people he meets at the local home improvement store to do the work.
Since they’re not professional painters, he provides all of the
equipment and paint needed to do the work. While at the apartment
complex, one of them breaks into an apartment, assaults the resident and
steals a wallet.
entrepreneur decides to open up his own car-for-hire business, and
creates an app allowing anyone to connect with people who need a ride.
The passengers pay the entrepreneur, who in turn pays a percentage to
the driver. Other than the app, the entrepreneur has no other
involvement between the driver and the passenger. One night, a driver
who is intoxicated picks up a passenger and then gets into an accident,
and the passenger is severely injured.