ExpertMedium1 markMultiple Choice
CPA · Question 12 · Area 2: Business Law
Under the doctrine of Respondeat Superior, which of the following acts by an employee would most likely result in the employer being held liable?
Under the doctrine of Respondeat Superior, which of the following acts by an employee would most likely result in the employer being held liable?
Answer options:
A.
An employee committing a serious crime (battery) against a customer during a personal argument.
B.
A delivery driver causing an accident while taking a slight detour to buy lunch on their route.
C.
An independent contractor causing damage while renovating the employer's office.
D.
An employee causing an accident while commuting from home to work.
How to approach this question
Apply the 'Scope of Employment' test. Distinguish Detour (minor, liable) vs Frolic (major, not liable). Commuting is usually not covered.
Full Answer
B.A delivery driver causing an accident while taking a slight detour to buy lunch on their route.✓ Correct
A delivery driver causing an accident while taking a slight detour to buy lunch on their route.
Under Respondeat Superior, employers are liable for torts committed within the scope of employment. A minor detour (lunch on route) is within scope; a major frolic is not.
Common mistakes
Thinking any personal activity (like lunch) automatically removes the employee from the scope of employment.
Practice the full CPA REG Practice Exam
72 questions · hints · full answers · grading
More questions from this exam
Q01Under Circular 230, which of the following scenarios represents a permissible contingent fee arra...HardQ02A CPA is preparing a tax return for a client who wishes to take a position that the CPA believes ...MediumQ03Regarding the retention of client records under Circular 230, which of the following statements i...HardQ04Under the Ultramares rule regarding accountant liability to third parties for negligence, which o...MediumQ05Taxpayer A filed their Year 1 tax return on April 15, Year 2. The return omitted ,000 of gross in...Medium