Management and Organizational Studies 2275A/B Chapter Notes - Chapter 16: Fiduciary, Regulatory Offence, Derivative Suit

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: Philip King

Document Summary

Chapter 16 the corporate form: operational matters. 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 to act 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. The identification theory is a theory specifying that a corporation is liable when the person committing the wrong is the corporation"s directing mind. While there is no reason why the identification theory could not be used as a way of assessing a corporation"s liability in contract, the courts generally have not followed this approach.