1. An employer is vicariously liable for the acts of an employee who commits tortious acts during the course of an employment. Same thing also when an agent is an employee of the principal, the principal is vicariously liable for the tortious acts committed by the agent. In the contrary, if an agent is an independent contractor. Is the principal liable for the tortious acts committed by the agent? TRUE OR FALSE? 2. ABC Corporation was awarded a project to create a water supply for the town of Olds. The project involved the construction of water intake line under a portion of the riverbed. During the design of the project, they foresaw that a risk of damage from flood is real. And that is why and before start of the project, they secure an insurance coverage for those risks. The corporation communicated to the agent of the insurance company their concern about that risk, and they wanted and insurance coverage specifically for construction materials, equipment, and construction site. The company was satisfied with the outcome of the conversation with the agent as the agent said that the coverage of the risks will be arranged, and the insurance policy will be delivered in due time. Immediately, the agent contacted the insurance company and purchase a policy that exclude the coverage, as requested, in the event of flood. When the river was flooded, it destroyed and damaged some of the construction materials, equipment, and its site. Worse, the company learned that the insurance policy does not cover them as directed. Questions: 1. If you are the owner of ABC Corporation, what is the appropriate action that you should do? a. Sue the principal for compensation of the damage. b. Sue the agent as well as the principal for compensation of the damage. c. Sue the agent for its failure to included in the insurance policy those risks as directed. d. Request the client who awarded the contract to compensate for the loss of materials as well as the equipment 2. Is the principal vicariously liable? TRUE OR FALSE? 3. company is an incorporated employee. What are courses of action that Russell should do in his defence, except? a. Write a letter to CRA and explain to them that the company is a registered corporation. b. Do nothing and pay the taxes as assessed. c. Explain to CRA that the company is an independent contract. d. Explain to CRA that, as independent contractor, the company paid and shoulder the insurance coverage for the project, used their own tools, and the time to complete the project was not controlled by Mark. 4. ABC Construction Inc. was contracted by JC company to construct a parking building. During the construction work, Jane, a passerby on the sidewalk was injured by a falling debris. The accident was attributed to the inadequate protection and safety for pedestrians by ABC Company. Is JC company liable for the negligence committed by ABC company? TRUE OR FALSE? 5. Jake is employed by ABC Computers Co. as sales agent. While driving a companys van doing his routine rounds, he negligently collided with another vehicle. Is Jakes company vicariously liable for his action? TRUE OR FALSE? 6. After office hours and without the permission or knowledge from his employer, Jake drives the van to his home and takes his family to a theater, while on its way, he negligently injures a pedestrian. Is Jakes company vicariously liable for his action? TRUE OR FALSE? 7. Jake has scheduled delivery of computers to the customer. While delivering it, Jake got involved with a heated argument with a customer regarding the specs and quality of the product. He accidentally pushed the customer who fell and injured himself. Is Jakes company vicariously liable for his action? TRUE OR FALSE?