Question

Joshua, an employee of Cosmic, Inc., was drinking during his lunch break on Tuesday. When he returned to work, his boss, Rebecca, noticed that Joshua had been drinking and sent him home for the remainder of the day, without pay.  Rebecca instructed Joshua to leave his car at work and take an Uber or a Cab home. Rebecca also instructed Joshua that she would pick him up in the morning on her way into work. Unfortunately, Joshua ignored Rebecca's instructions and drove himself home and on the way home, he caused an accident injuring a third party. Is Cosmic, Inc. liable for the damages that resulted from its employee's behavior. Why or why not?

Answer 1

Rebecca or her company has not given any instructions to Joshua to use the car for any purpose related to business. Moreover she specifically said Joshua not to drive the car by himself. Hence there was no agency relationship in this activity. Hence the company or Rebecca is not responsible for the damages in the accident.

Agency relationship would have worked if the company or Rebecca as a boss(not for personal jobs) asked Joshua to do some task for company purposes. The agreement can be written or oral ,but here both has not happened and hence Cosmic Inc is not liable for the damages.