Paralegal Exam Prep

Category - Miscellaneous

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Where there is an agency relationship, the principal is considered to be bound by the acts of the agent if there is apparent authority. This is known as:

Assumption of risk liability.
Vicarious liability.
Limited liability.
Absolute liability.
Public liability.

Explanation

Answer: B. This is known as vicarious liability. Vicarious liability is the common law doctrine that imposes responsibility upon one person for the negligent act of another, with whom the person has a special, legal relationship. Vicarious liability is also referred to as secondary liability.

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