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The law of obligationsSection ASyllabus BCorporate and Business Law

ACCA · Question 07 · The law of obligations

'QuickCharge Scooters Ltd' hires mechanics to repair its e-scooters. The mechanics use their own tools, choose their own hours, and are paid per repair. One mechanic negligently leaves a scooter in a dangerous condition, injuring a pedestrian.

Is QuickCharge Scooters Ltd vicariously liable for the mechanic's negligence?

Answer options:

A.

Yes, because the mechanic was performing work for the benefit of the company.

B.

Yes, because companies are strictly liable for all torts committed by anyone handling their property.

C.

No, because the mechanic is likely an independent contractor, not an employee.

D.

No, because vicarious liability only applies to intentional torts, not negligence.

How to approach this question

Evaluate the employment status of the mechanic using the multiple test (tools, control, financial risk). If they are an independent contractor, vicarious liability usually does not apply.

Full Answer

C.No, because the mechanic is likely an independent contractor, not an employee.✓ Correct
An employer is generally only vicariously liable for the torts of its employees committed in the course of employment. The facts (own tools, choosing hours, paid per repair) strongly suggest the mechanic is an independent contractor. Principals are generally not vicariously liable for the torts of independent contractors.

Common mistakes

Assuming any worker performing a task for a company makes the company vicariously liable.
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