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Under what circumstances can a PIC not be found liable for activities of their employees?

User Tanman
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1 Answer

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Final answer:

A person in charge is typically not liable for the actions of their employees if the employees are acting outside the scope of their employment, if the actions are not authorized, or if the employees are independent contractors. Legal protections such as corporate structures and employment contracts also play a role in determining liability.

Step-by-step explanation:

A person in charge (PIC) may not be held liable for the activities of their employees under certain circumstances. If the employees are acting outside the scope of their employment, or if the employees' actions are not authorized or ratified by the PIC, then the PIC typically cannot be held liable. Another situation where a PIC might not be liable is if the employees are considered independent contractors, as opposed to direct employees, since the legal responsibilities differ in this case.

Furthermore, companies often have certain protections in place, such as corporate structures that limit the personal liability of individuals, including those in charge, for the actions of the corporation's employees. Also, there may be specific clauses in employment contracts or company policies that delineate the extent of liability or indemnification provisions that shield the PIC from liability for employee actions under certain conditions.

User Daniszw
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