What is corporate liability? List and define the tests that are used to determine whether a corporation should be held criminal liable. Why do we hold corporations criminally liable? How can a corporation possess a criminal intent?

Question

What will be an ideal response?

Answer 1

Corporate liability is the imposition of vicarious liability to corporations or corporate officers. There are two primary tests for determining whether a corporation should be held criminally liable: (1) Respondeat superior or the responsibility of the superior – a corporation may be held liable for the conduct of an employee who commits a crime within the scope of his or her employment who possesses the intent to benefit the corporation; (2) Model Penal Code section 2.07 – criminal liability is imposed in those instances that the criminal conduct is authorized, requested, commanded, performed, or recklessly tolerated by the board of directors or by a high managerial official acting on behalf of the corporation within the scope of his or her office or employment. We hold corporations criminally liable because it is presumed that employers should properly supervise their employees.