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Westinghouse)
27i.But employer’s benefit must be balanced against the personal nature of the trip (Ahlstrom v. Salt Lake)b.Special Hazards: when travel to and from work involves special hazards; must be more than distancec.Dual Purpose Doctrine: when employee is both commuting and performing a service for employer, he is within scope of employmentiv.Frolic v. Detour: a frolic is not within the scope of employment, whereas a mere detour isv.Despite Faul v. Jelco, travel pay is a bad indicator of scope of employmentd.Does Necessary Principal-Agent Relationship Exist?i.Five Factors(DC v. Hampton)1.selection and engagement of servant2.payment of wages3.power to discharge4.power to control agent’s conduct(generally most important)5.whether work is part of regular business of employerii.Independent Contractors 644-647: Employers are not vicariously liable for the torts of independent contractors1.As a result, employers often attempt to structure contracts so that employees will be considered independent contractorsiii.Even if not vicariously liable, employer can still be liable for his own negligence in hiring/retaining incompetent employees3.Other Forms of Vicarious Liabilitya.Partnership: each partner can be seen as general agent for the other partnersb.Joint Enterprise: all members liable when outside persons are injured, but not liable when members of enterprise are injuredc.Concert of Actiond.Tacit Agreement to Participate in a Torte.Entrustment of Vehiclei.Negligent Entrustment: Not vicarious liability, but liability under comparative fault rulesii.Owner in the car with right of control: ordinary negligence, not vicariousiii.Ordinary bailment: no agency and no liabilityiv.Owner consent statutes: owner liable if he consented to use by anotherv.Family Purpose Doctrine: owner liable for negligent use by family memberf.Imputed Contributory Negligencei.Both Ways Rule: If M is vicariously liable for S’s negligence, then M’s recovery against T is either reduced or barred on the basis of S’s negligenceii.Negligence of Family Members: No longer true that family member’s negligence will be imputed to another family memberiii.Bailments: owner can usually recover against negligent third party even if bailee was at fault
284.Insurance: Reduction of Risk Through Cost-Spreading(800-804)a.Insurance companies are vicariously liable: they didn’t burn the house down, but they’re going to have to pay for itb.What it Does: i.Takes advantage of increased statistical accuracy of large numbers to reduce uncertainty (it’s easier to predict that one house out of a hundred will burn down this year than to predict exactly when my house will burn)ii.Spreads cost of managing/preparing for uncertain risks among all members of the risk poolc.Two Typesi.First Party Insurance(Loss Insurance)1.If there is a loss, insured party reports it to his own insurer and gets compensated2.Fault is irrelevant3.Insurance company gets subrogated to rights of insured and can sue whomever is actually at fault4.