Sam is a sales representative for the Incman Corporation. Sam has a terrible driving record and has had his driver's license revoked, but nevertheless he continues to drive the company car for his job. One day he drives too fast for conditions, goes through a red light, and strikes a pedestrian. The accident happened despite the fact that Sam's supervisor at Incman had repeatedly reprimanded him and advised him to drive more cautiously. Incman:
A) has no liability, because they did not authorize Sam to drive carelessly.
B) is partial liable , because Sam's actions were criminal.
C) is liable even though it did not authorize Sam to drive carelessly, because it employed an improper person as its agent.
D) has no liability, because it has adequately supervised Sam as its agent.

Question

Sam is a sales representative for the Incman Corporation. Sam has a terrible driving record and has had his driver's license revoked, but nevertheless he continues to drive the company car for his job. One day he drives too fast for conditions, goes through a red light, and strikes a pedestrian. The accident happened despite the fact that Sam's supervisor at Incman had repeatedly reprimanded him and advised him to drive more cautiously. Incman:
A) has no liability, because they did not authorize Sam to drive carelessly.
B) is partial  liable , because Sam's actions were criminal.
C) is liable even though it did not authorize Sam to drive carelessly, because it employed an improper person as its agent.
D) has no liability, because it has adequately supervised Sam as its agent.

Quizplus · Accepted Answer

Employing someone with a known poor driving record and allowing them to continue driving for the company, despite knowledge of their revoked license and history of careless driving, makes the company liable for the actions of their employee under the principle of negligent hiring or retention.

Sam Is a Sales Representative for the Incman Corporation