Future Business Leaders of America (FBLA) Entrepreneurship Practice Test

Which term refers to the responsibility of a business for the actions of its employees within the scope of their employment?

1. Vicarious Liability

2. Respondent Superior

3. Negligence

4. Corporate Liability

The correct answer is: Respondent Superior

The term that refers to the responsibility of a business for the actions of its employees within the scope of their employment is known as "Respondent Superior." This legal doctrine establishes that an employer can be held liable for the negligent actions of its employees if those actions occur while the employees are performing duties related to their job. The principle is based on the idea that employers have a responsibility to ensure that their employees are properly trained and supervised in their roles. In this context, the relationship between employer and employee comes into play, emphasizing that the employer bears the risk associated with the actions of employees as they fulfill their job responsibilities. This helps to ensure that victims have a means of recovery for harm caused by employees acting within the scope of their employment, thus holding businesses accountable for providing a safe and lawful working environment. While "Vicarious Liability" is often related to this concept and refers to the liability that one party incurs for actions of another based on their relationship, the specific term that underscores the employer's responsibility in this context is more accurately captured by "Respondent Superior." Negligence pertains to the failure to take proper care in doing something, and corporate liability encompasses the legal obligations a corporation has, but these do not specifically address employee actions within the