Question

How can the imputed negligence act be a problem in an organization and give an example?

Answer 1

As per the Imputed negligence act a party is held liable for the conduct of another person due to his special relationship with the other. As an example, an employer can be held liable for the negligence of his employee. In an organisation the employer is the master and can be held liable for the acts of the employee. This can create problems if employees are negligent and result in unnecessary expenses and loss of goodwill of the organisation. For instance if the driver of goods delivery truck is found negligent for an accident then the organisation which employed the driver has to pay the damages for negligence.