Which of the following is an example of vicarious liability?

Vicarious liability refers to a situation where one party is held liable for the actions of another party, based on the relationship between the two. The principle stems from the idea that a principal or employer can be held responsible for the negligent acts of their agents or employees, as long as those acts occur within the scope of their duties.

In this context, when a principal is liable for an agent’s actions, it perfectly exemplifies vicarious liability because it establishes the legal responsibility of the principal for the actions performed by the agent while acting on behalf of the principal. For example, if an employee causes harm while performing their job duties, the employer can be held liable, as the employee was acting in the course of their employment.

The other provided scenarios do not capture the essence of vicarious liability as effectively. An agent acting without authorization does not reflect vicarious liability since it involves unauthorized actions not approved by the principal. Similarly, a broker misrepresenting a policy pertains more to direct liability on the part of the broker rather than a principal being responsible for the broker’s actions. Lastly, a customer suing an insurance company directly involves a contractual relationship rather than an example of vicarious liability, since it does not relate to the