BUSI 2601 Chapter 16: Chapter-16
21 Jun 2016
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A corporation is a legal person in the eyes of the law. The corollary is that the corporation is responsible for its own actions. The responsibility of the corporation is, however, complicated by the necessity of corporations acting through human agents. A corporation can experience two distinct kinds of liability in tort: primary liability and vicarious liability. A corporation has primary liability for a tort when, in law, it is regarded as the entity that actually committed the tort in question. Generally, it is the highly placed corporate of cers who are classi ed as directing minds, while low-level employees are not. Note: a corporation has vicarious liability when the tort has been committed by an agent or employee who is not a directing mind of the corporation. A corporation is bound by the actions of the agent only if the agent is acting within his actual or apparent authority.
