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A principal's liability for an agent's torts may be found on any one or more of four bases, including respondeat superior liability, direct liability, the torts of independent contractors, and misrepresentation.

Suppose that Pizza Time, a California pizza chain, hired a new driver, Walt, to deliver pizzas. Pizza Time tightly controls the physical details of Walt's work, and instructs all its drivers that pizzas have to be delivered within a half hour of order or their pay will be docked. On his way home after a shift, Walt gets into a car accident with Mary. Mary sues both Walt and Pizza Time.

Q-Mary's central argument that Pizza Time should be liable rests on respondeat superior liability. How would a court likely rule under this claim and why? Identify the two factors required for respondeat superior to apply. What facts work in favor of Mary? What facts work in favor of Pizza Time?

Operation Management, Management Studies

  • Category:- Operation Management
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