Question

Nelson is properly classified as an independent contractor for FunTime Toys. While driving to a meeting at FunTime's headquarters, Nelson caused a car accident in which a cab driver was hurt. Upon investigation, it was found that Nelson was on the phone with one of the managers at FunTime when he was driving that day. Which of the following may be true in the context of liability for the accident?
A) FunTime has no liability, because Nelson is not a full-time employee.
B) FunTime has vicarious liability.
C) FunTime has no liability, but only if Nelson is a member of a protected class.
D) FunTime has strict liability.

Answer 1

FunTime has no liability, because Nelson is not a full-time employee

Explanation:

Liability — any duty legally binding. The requirement to pay a cash compensation in the form of insurance for accidents or damages caused by reckless or illegal actions of the person.

Liability is determined by who is accountable for a traffic accident and thus responsible for the damages (perjudications) incurred by the people affected by the collision. Responsibility for a car accident can be determined by various means, including police reports, testimonies, scene proof, vehicle damage, and traffic violation proof.