Introductory Business Law CLEP Prep Practice Exam

Respondeat Superior is the legal theory that holds an employer or principal liable for the actions of their employees or agents, if those actions were done in the course of their employment or agency. This means that if a person is employed by a company or acting on behalf of a company, any wrongs committed by them can also be attributed to the company and the company can be held responsible.

The other options listed are not related to this specific type of liability. Collateral Estoppel is a legal doctrine that prevents a person from relitigating an issue that has already been decided in a previous court case. Private Nuisance is a legal claim that a person can bring against another person for interfering with their use and enjoyment of their property. Res Ipsa Loquitur is a legal principle that allows a jury to infer negligence from the circumstances of an accident, even without direct evidence of negligence