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Liability for independent contractors and Agents: Is a principal liable for the torts of or for damages caused by their agent? Yes. But you must first establish that there is indeed a relationship. If you cannot find an agreement or other circumstances leading to any such agency relationship, there will most likely be no liability. But here is a trick – if a person acts as if there is an agency or contractor relationship – although there is no agreement or other document related to any such relationship, and the principle is aware of these actions and does nothing to stop it, it could be deemed a relationship exists and the principal would then be liable. This is called agency by ratification, meaning the principle knew of the action and did nothing to stop it. Independent Contractors and/or the Creation of an Agency relationship. The biggest factor for identifying independent contractors is the degree of control the principal / employer has over the contractor. Minimal control = independence with little liability, where significant control = employee status or proof of an Agency relationship and some or full liability. In cases of Negligence, the Principal is often liable. Fact pattern. Renaldo, Inc., doing business as Baker Street, owns and operates a nightclub in Georgia. On the evening in question, plaintiff Ginn became “silly drunk” at the nightclub and was asked by several patrons and the manager to leave the premises. The police were called, and Ginn left the premises. When Ginn realized that his jacket was still in the nightclub, he attempted to reenter the premises. He was met at the door by the manager, who refused him admittance. When Ginn persisted, and unidentified patron, without the approval of the manager, pushed Ginn, who lost his balance and fell backward. To break his fall, Ginn put his hand against the door jamb. The unidentified patron slammed the door on Ginn’s hand and held it shut for several minutes. Ginn, who suffered severe injuries to his right hand, sued the nightclub for damages. Question based on 25. Based on the data above, according to the fact pattern, was the unidentified patron an agent of the nightclub? Yes or No. Explain your answer below.

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M93133425

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