What term describes the relationship where an employer may be held responsible for the negligent acts of an employee?

Study for the Georgia Personal Lines Agent Exam. Prepare with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

The term that describes the relationship where an employer may be held responsible for the negligent acts of an employee is known as vicarious liability. This legal doctrine holds an employer or principal legally responsible for the negligent actions of an employee or agent when such actions occur in the course of their employment or within the scope of their duties. Vicarious liability is based on the principle that employers have a responsibility to oversee and manage their employees, and therefore bear the burden of ensuring that employees act within the law while performing their job functions.

In practice, this means that if an employee causes harm to a third party while executing their job responsibilities, the employer can be liable for those damages. This concept serves as a protective measure for victims, ensuring they have a means of recovering compensation from an entity (the employer) that typically has greater financial resources than an individual employee.

The other terms listed do not directly describe this concept of liability. General liability refers to a broader category of insurance coverage that protects businesses from various types of claims, but it doesn’t specifically address employer responsibilities for employee actions. Corporate responsibility pertains to a company's accountability regarding its actions and their impact on society, encompassing ethical behavior and community engagement rather than specific legal liabilities related to employee misconduct. Agency theory is

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