Under what condition is a principal liable for an intentional tort committed by an agent?

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!

A principal is liable for an intentional tort committed by an agent when the agent's motivation is to promote the principal's business. This concept falls under the doctrine of vicarious liability, which establishes that an employer (or principal) can be held responsible for the actions of an employee (or agent) if those actions are taken in furtherance of the employer's interests.

When an agent commits a tort with the intent to benefit the principal, it shows a direct connection between the agent's actions and the principal's business. In legal terms, the agent is acting within the scope of their employment, even if their actions are unauthorized or involve some degree of wrongdoing. Thus, the motivation aligns with the business objectives of the principal, creating a scenario where liability is imposed.

The other circumstances outlined do not satisfy the requirement for liability. If the agent is acting solely in their own self-interest, is not on business premises, or if the tort occurs outside of business hours without any relation to the principal’s business interests, then the principal would typically not be held liable, as those actions would not be considered within the scope of the agent's authority or employment.

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