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An organization (the principal) appoints a Servicemen (the agent) to oversee its transactions in an area. If the servicemen engages in corrupt practices to secure contracts for the company, the organization will be ...

Option: 1

Held vicariously liable for the servicemen's actions because they were acting on behalf of the organisation.


Option: 2

 Not held vicariously liable for the servicemen's actions 


Option: 3

Not held vicariously liable for the servicemen's actions because they were acting on behalf of the organisation because it was beyond the scope of employement.


Option: 4

None of the above


Answers (1)

best_answer

The relationship between the organization and servicemen is that of therefore, principal and agent. Hence, option (a) is correct.

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Rishi

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