Which of the Following Statements Is TRUE with Respect to the Doctrine

question 48

Multiple Choice

Which of the following statements is TRUE with respect to the doctrine of vicarious liability?

• A) Because personal liability and vicarious liability are separate concepts, a successful plaintiff usually is entitled to collect full damages from both the employee and the employer.
• B) While vicarious liability provides employers with more incentive to act carefully when selecting, training, and supervising employees, it also tends to provide employees with less incentive to act carefully as they perform their jobs.
• C) Vicarious liability serves tort law's compensatory function by increasing the possibility that the tortfeasor will receive damages from someone.
• D) As a general rule, an employee who has paid damages for a tort that he or she personally committed is entitled to use the doctrine of vicarious liability to recover that same amount of money from his or her employer.
• E) A person who is injured by a tort that was committed by an employer personally can use the doctrine of vicarious liability to sue any of the employer's employees.

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Definitions:

Countercyclical Stock

A stock whose price tends to move in opposition to the overall business cycle, performing well during economic downturns.

Standard Deviation

A measure of the dispersion or variability of a set of data points relative to their mean, used to gauge the amount of variation or spread in a distribution.

Risk Premium

The additional return over the risk-free rate demanded by investors for taking on a higher level of risk.

Beta

A measure of a security's volatility in relation to the overall market; a beta above 1 indicates higher than market average volatility.