Principles of Risk Management and Insurance 13th Edition by George Rejda,Michael McNamara

Exercise 2

Parkway Distributors is a wholesale firm that employs several outside salespersons. Emily, a salesperson employed by Parkway Distributors, was involved in an accident with another motorist while she was using her car to make regular sales calls for Parkway Distributors. Emily and the motorist are seriously injured in the accident. The motorist sues both Emily and Parkway Distributors for the injury based on negligence.
1. Describe the requirements that the motorist must establish to show that Emily is guilty of negligence.
2. On what legal basis might Parkway Distributors be held legally liable for the injury to the motorist? Explain your answer.
b. Tom asks his girlfriend, Megan, to go to a supermarket and purchase some steaks for dinner. While driving Tom's car to the supermarket, Megan failed to stop at a red light and seriously injured a pedestrian. Does Tom have any legal liability for the injury? Explain your answer.