Question

Which of the following is generally true of the relationship between businesses and employees?

a.Business are not bound by the actions of employees.
b.Businesses are liable on contracts their employees make but not torts their employees commit.
c.Businesses are liable for torts their employees commit but are not bound on contracts their employees create.
d.Businesses are liable on contracts their employees make and torts their employees commit.

Answer 1

Businesses are liable on contracts their employees make and torts their employees commit.

Step-by-step explanation:

The correct answer is d. Businesses are liable on contracts their employees make and torts their employees commit.

When employees of a business enter into contracts or commit torts, the business is held responsible for their actions. This means that if an employee makes a contract on behalf of the business, the business is legally bound to fulfill the terms of that contract. Similarly, if an employee commits a tort (such as negligence or defamation) while working for the business, the business can be held liable for any damages caused.