Under what circumstances can a corporation be held liable for acts of its employees?

A corporation can be held liable for the acts of its employees primarily when those acts are performed within the scope of their employment. This principle is rooted in the doctrine of “respondeat superior,” which translates to "let the master answer." Under this doctrine, an employer (or corporation) may be responsible for the actions of its employees when those actions are carried out as part of their job duties.

When employees are acting within the scope of their employment, it means they are engaging in activities that are part of their work responsibilities and intended to benefit the employer, even if the actions taken violate the employer's policies or are improper. This liability applies to a wide range of employee actions, including negligent acts or omissions that occur while performing job duties.

In contrast, the idea that a corporation would only be liable for acts committed by a high-level executive fails to acknowledge that liability can arise from the actions of employees at all levels, provided those actions are in line with their job functions. If an employee acts in their personal capacity, such behavior is typically outside the bounds of the corporation's responsibility as it does not benefit the corporation in any way. Lastly, asserting that a corporation is liable for any act committed by an employee, regardless of context, does not