Explain Under What Circumstances a Principal Can Be Held Liable

question 80

Essay

Explain under what circumstances a principal can be held liable for torts committed by an agent.

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Definitions:

Marginal Cost

The additional cost resulting from the creation of one more unit of a product or service.

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output.

Unit Costs of Production

The total expense incurred by a company to produce, store, and sell one unit of a particular product or service.