1) Module 11 Topic/Legal Issue:
Topic: Liability to Third Party
Issue: Disney has a fleet of Delivery Drivers who obtains goods and products at the ship yard and delivery’s them to the warehouse in Anaheim. John, a delivery driver for Disney, negligently hits a bicyclist on the crosswalk causing him to go to the hospital. Is Disney liable for the injuries of the bicyclist even though it is John’s fault?
2. Why does this topic apply to your workplace? Disney has a large number of employees who works outside and may encounter accidents along the way. Disney needs to be prepared for the possibility of liability to third parties if their employees commits fault.
3. IRAC Analysis
Issue: Disney’s employer caused injury to a third party when delivery goods to the warehouse. Does Disney have to compensate the third party for the negligence of their employee?
Rule- Departure from the Employer’s Business: The employee who detours from the employer’s business is not substantial, the employee is still within the scope of employment, and the employer is liable (Cite: West Law p. 597.)
Rule- Scope of Employment:
1. whether the employee’s act was authorized by the employer. 2. The time place, and purpose of the act. 3. Whether the act was one commonly performed by employees on behalf of their employers. 4. The extent to which the employer’s interest was advanced by the act. 5. The extent to which the private interests of the employee were involved 6. Whether the employer furnished the means or instrumentality. 7. Whether the employer had reason to know the employee would perform the act. 8. Whether the act involved serious crime. (Cite: West Law p. 596.).
Application: Since the delivery man for Disney was in the middle of delivering goods as well as driving he company truck, Disney is liable for the damages caused by the employee.
Conclusion: Disney has to pay for the injuries of the third party for the employee’s negligence.
4. Appropriate management response to the situation to limit legal liability.
5. Preventative measures that management can take to limit liability in the future. Explain the action that management can take to apply the liability limiting rules to the situation.
6. Give citations for legal rules that may limit liability.
Most intentional torts that employees commit have no relation to their employment; thus their employers will not be held liable. An employer who knows or should know that an employee has a propensity for committing tortuous acts is liable for the employee’s acts even if they would not ordinarily be considered within the scope of employment (Cite: West Law p. 599). To reduce the likelihood of liability losses, employers set up stringent work rules. Almost always employers purchase liability insurance to cover the actions of certain employees (Cite: West Law p. 599.).