Are principals liable for intentional torts committed by their agents outside the scope of business?

Prepare for the BPA Business Law and Ethics Test with engaging flashcards and multiple choice questions. Each question comes with explanations to enhance understanding. Succeed in your exam confidently!

In the context of principal-agent relationships, principals are generally not liable for the intentional torts committed by their agents if those actions occur outside the scope of employment or business activities. This is based on the legal principle that liability is contingent on the behavior occurring within the scope of the agent's duties.

When an agent acts within the scope of their employment, the principal can be held liable for the agent's actions because those actions are seen as being performed on behalf of the principal. However, if the agent engages in intentional torts that are purely personal and unrelated to their work duties, the actions fall outside the realm of the principal's responsibility.

This means that if an agent commits an intentional tort while acting independently and not in furtherance of the principal's business interests, the principal cannot be held liable. Therefore, the statement is accurate: principals are not liable for such torts committed by their agents outside the scope of business.

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