Question

Select the best answer choice.

Whitmore, a used-car dealer, hired Chambers as a sales representative for six months at a
weekly salary of $200 plus commission.
If a customer is injured in an accident caused solely by Chamber's careless driving, that
customer can sue Whitmore because the principal --
O has a duty to compensate the agent for any loss or damage.
O is bound by any knowledge acquired by the agent.
O has a duty to live up to the terms of the contract.
O is liable for torts of an agent acting within the scope of the agency.

Answer 1

A customer can sue Whitmore on the basis of vicarious liability because the principal is liable for torts committed by an agent within the scope of their agency.

Step-by-step explanation:

If a customer is injured in an accident caused solely by Chamber's careless driving, that customer can sue Whitmore because the principal is liable for torts of an agent acting within the scope of the agency. This principle is rooted in the concept of vicarious liability, where a principal is held responsible for the actions of their agents that occur during the course of their employment. By being on duty and engaging in activities related to sales representation (which could include driving a vehicle), Chambers's actions would likely be considered within the scope of their agency relationship with Whitmore.