What is meant by vicarious liability?

Vicarious liability refers to the principle where one party is held liable for the negligent actions or omissions of another party, typically in a relationship characterized by a degree of control, such as an employer-employee relationship. This legal doctrine allows a plaintiff to hold an employer responsible for the negligent behavior of an employee when that behavior occurs within the scope of employment.

The rationale behind vicarious liability is that employers can better absorb the costs associated with employees' actions and may also have greater resources to address such situations. This principle encourages employers to maintain safe working environments and to provide proper training to prevent employee negligence. Thus, option B accurately captures the essence of vicarious liability as it pertains to indirect legal responsibility for another's actions.

In contrast, the other options refer to different concepts. Direct legal responsibility for one’s own actions refers to personal liability, which does not involve third parties. Responsibility assumed through a contract implies an explicit agreement that establishes liability, while liability that cannot be transferred highlights a type of liability that remains with a specific entity or individual and cannot be delegated or passed on to someone else. Each of these options addresses different aspects of liability that are distinct from the vicarious liability principle.