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LEGAL PRINCIPLE: In the employer-employee relationship, the employer is held liable for all the wrongs committed by his employees in the course of employment.
FACTUAL SITUATION: David was employed as a Driver in ABC and Co. over the past 15 years and has been appreciated by the General Manager for his hard work and sincerity. He has been rewarded by the company for his accident free record. David's younger brother wanted to join the same company as a driver. He obtained a Learner's License and joined a Driving School and was learning driving during the last three months. He was on the verge of completion of the training and appear for the Driving test. He wanted to have more practice before the test and requested his brother David for using the Company's car for two days. David also allowed him to use the office car for the practice. While he was practicing driving, a truck came from the wrong side, hit the company's car driven by David's brother, which in turn hit a pedestrian and injured him. The pedestrian sues the company for damages.
DECIDE.

A
The Company is not liable as it was driven by David's brother.
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B
The Company is liable as David allowed his brother to drive the car.
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C
David's brother is personally liable.
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D
The Company can shift the responsibility on the truck driver's.
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Solution

The correct option is A The Company is not liable as it was driven by David's brother.
Vicarious liability can be defined as a legal doctrine that assigns liability for an injury to a person who did not cause the injury who has a particular relationship to the person who did act negligently. It can also be called as imputed negligence. This doctrine arises under the common law doctrine of agency, respondeat superior, the responsibility of the superior for the acts of their subordinate or, in a broader sense, the responsibility of any third party that had the "right, ability or duty to control" the activities of a violator. Hence, the company will not be held liable.

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