Which example illustrates vicarious liability?

Vicarious liability refers to a legal doctrine in which an employer or principal is held responsible for the negligent actions of their employee or agent while they are performing duties on behalf of the employer or principal. The concept emphasizes the responsibility of an entity for the actions of another, particularly within an employment relationship.

In the context of the example provided, the scenario of an employee causing damage while performing their job for their employer perfectly illustrates vicarious liability. Here, the employer can be held liable for the actions of the employee because the employee was acting within the scope of their employment when the damage occurred. This principle ensures that victims can seek compensation not only from the individual who caused the harm but also from the employer who has the resources to cover the damages.

The other options do not depict vicarious liability. They either involve personal liability without the employer being implicated or do not involve a workplace relationship. For instance, a pedestrian injured by a falling sign does not connect to an employer's liability, and similarly, a homeowner injuring a guest relates strictly to personal liability rather than an employee-employer scenario. A driver in an accident due to a faulty vehicle again does not involve an employment context that would invoke vicarious liability. Thus, the focus on