Analysis of Vicarious Liability Claims for EIC Ltd: A Legal Report

This report examines the legal aspects of vicarious liability within the context of a business, using the case of EIC Ltd. The report begins by defining vicarious liability and explaining the master-servant relationship. The case scenario involves two incidents: a driver under a zero-hours contract causing injury due to negligence, and a site manager's battery leading to injury. The analysis focuses on whether EIC Ltd is vicariously liable for the actions of its employees. The report concludes that vicarious liability exists in both scenarios due to the employer-employee relationship. It also outlines steps EIC Ltd could take to reduce its future exposure to such claims, including consulting with attorneys, assisting staff, and exercising caution with independent practitioners. The report provides references to relevant books and journals to support its findings.

Legal Aspects of Business

INTRODUCTION
Legal aspects are those kind of rules and regulations which is been used for providing
basic framework in formation of business organization. These aspects covers various kinds of
laws which makes objectives and goals of organization accomplished in more effective manner.
Law of torts are the laws which deals upon wrongs which has been committed by an individual
in day to day life it includes vicarious liability, negligence and trespass. This presentation is
based upon law of torts which deal with voracious liability
TASK
Case scenario: In this case two incidences takes place within an organization EIC Ltd.
First incident driver was retained under ‘zero-hours’ contract by EIC Ltd and was delivering
building material with the help of train. Under his course of work crane was parked by him on
pavement but did not notice pedestrian which resulted in causing swung with the pedestrian path
causing head injuries to an pedestrian. In second incident an employee of EIC Ltd punched local
resident on his face due to which his nose break during a heated argument. Resident complained
about noise and bad language used by construction worker on -site.
Whether EIC Ltd will be vicariously liable (a) to the pedestrian for her injuries resulting from the
negligence of the truck-mounted crane driver/operator (b) to the local resident for his
injuries following the battery inflicted by the Site Manager.
Vicarious liability this is the situation within which one party is been held responsible
over making unlawful actions in relation to third party. In this third party carries share in relation
to liability. Vicarious liability arises due to situation within which relationship of master and
servant is explained. Under vicarious liability “Master is held liable over wrong that is been
committed by his servant”. Vicarious liability can arise in situations where one party is
supposed to be responsible for a third party and is negligent in carrying out that responsibility
and exercising that control.
From the above case scenario it can be observed that ' zero hour' contract exists between
driver and ECI Ltd within which an employee is not required to show number of working hours.
So, as per the situation it can be seen that driver has done negligence on his part but was working
on order of ECI Ltd. That is why employer and employee relation exists which makes vicarious

liability occur. Other case scenario also vicarious liability exists because of master and servant
relationship between ECI Ltd and site manager. In both the cases claims can be initiated.
What steps EIC Ltd might take to reduce its exposure in relation to vicarious liability claims in
the future.
Steps EIC Ltd might take to reduce its exposure in relation to vicarious liability claims
they are as follows:
 Consulting with an attorney about protecting the practice from exposure to vicarious
liability.
 Providing assistance to staff members and employees upon professional practices.
 Exercising caution with independent practitioners who share office space.
CONCLUSION
From the above discussion it can be concluded that legal aspect of business forms
framework required for establishing business organization. Then in this file vicarious liability is
covered within which master is held liable for deed of servant.

REFERENCES
Books and Journals
Andreeva, A., Dimitrova, D. and Aleksandrova, N., 2019. Legal and Economic Aspects of the
Control over the Business Activity of State Higher Schools. Ikonomiceski i Sotsialni
Alternativi. (4). pp.74-85.
Dodevska, V.P. and Nuredini, B., 2020. Lost profit-Legal aspects.
Frolova, E.E and et. al., 2018. Information security of Russia in the digital economy: the
economic and legal aspects. J. Advanced Res. L. & Econ.. 9. p.89.
Mandazhieva, Z., 2020. Some IP Legal Aspects of Software Projects Containing FOSS
Delivered to a Third Party Under a Business Contract in the EU. Available at SSRN
3760709.