Question

Businesses that deal directly with the public, especially in service industries, may find their employees becoming involved in altercations with customers in the course of their work. Such altercations:______

a) may be inconvenient, but do not expose the business to liability.
b) can result in actions against the business on the basis of vicarious liability.
c) can lead to employees being held liable, but will not impact the business itself.
d) should be ignored so as to avoid attracting liability.

Answer 1

Businesses can be held responsible for their employees' actions through vicarious liability, which makes it important for them to handle customer altercations properly, rather than ignoring them, to minimise liability risks.

Step-by-step explanation:

When businesses deal directly with the public, especially in service industries, employees may become involved in altercations with customers. These altercations can result in actions against the business on the basis of vicarious liability. Vicarious liability holds a company responsible for the actions of its employees performed in the course of employment. Ignoring such incidents is not advisable as it does not avoid liability and can harm the business's reputation and legal standing. It is essential for businesses to have clear policies and training to manage such situations and also to carry adequate insurance to protect against potential lawsuits.