Briefly explain the liability for an independent contractor's torts
What will be an ideal response?
Generally, a principal is not liable for the torts of its independent contractors. Independent contractors are personally liable for their own torts. The rationale behind this rule is that principals do not control the means by which the results are accomplished. However, principals cannot avoid liability for inherently dangerous activities that they assign to independent contractors. For example, the use of explosives, clearing of land by fire, crop dusting, and other inherently dangerous activities involve special risks. In these cases, a principal is liable for the negligence of the independent contractor the principal hired to perform the dangerous task.
You might also like to view...
The press conference scheduled for the Falcon's Lair "Best of the Nest" program would most likely be successful if the ________
A) speaker made a few humorous comments B) speaker's statements lasted at least twenty minutes C) moderator refrained from controlling the questions being asked D) speaker used Power Point slides to illustrate the message E) speaker gave an impromptu statement instead of a prepared statement
Which of the following statements regarding service companies and activity-based costing (ABC) is true?
A) Service companies are not permitted to use ABC costing. B) Service companies find it easier to use ABC costing than manufacturing companies. C) Fewer repetitive activities make ABC costing more difficult to implement in service companies. D) Service companies have proportionately less facility-level costs than manufacturing companies.
Which of the following does not appear in the production report?
A) costs transferred from prior departments B) costs added in the department C) physical units passing through the department D) retail value of the units produced
In the U.S., which of the five basic modes of transportation is responsible for the largest volume (in tons) of domestic freight hauled?
a. Rail b. Truck c. Pipeline d. Water