What is 'vicarious liability'?

VICARIOUS LIABILITY: Legal responsibility that one party bears for the wrongful actions of ANOTHER, based on their relationship. CLASSIC EXAMPLE: RESPONDEAT SUPERIOR — an EMPLOYER is liable for the negligent acts of an EMPLOYEE committed within the SCOPE OF EMPLOYMENT (e.g., a delivery driver who causes an accident while working — the employer is liable); OTHER EXAMPLES: A business liable for acts of its agents; parents (in some cases) for minor children; vehicle owners for permitted drivers (in some states); BASIS: The party held vicariously liable didn't commit the act directly but is responsible due to the relationship and control; INSURANCE: Liability policies often cover vicarious liability exposure (e.g., employers' liability for employees' acts); SCOPE OF EMPLOYMENT is key — the employee's act must be within their job duties; vicarious liability is an important liability concept on the casualty exam — understanding that businesses/employers can be liable for others' acts (especially employees within scope) shapes liability coverage needs.