When an employer is held responsible for the actions of an employee, this is known as?

The correct answer is vicarious liability, as this legal concept holds an employer responsible for the actions taken by an employee while they are performing their job duties. This principle is based on the idea that employers have a duty to oversee and control their employees' actions, especially when these actions occur within the scope of employment. Therefore, if an employee causes harm to another person or property while carrying out work-related activities, the employer can be held liable for those actions.

Vicarious liability ensures that injured parties can seek compensation from the employer, who is often in a better financial position to provide restitution than the employee. This doctrine promotes accountability within the employer-employee relationship and encourages employers to maintain proper oversight of their staff.

The other terms listed, such as negligence and direct liability, refer to different legal circumstances. Negligence pertains to situations where a party fails to exercise reasonable care, leading to harm, while direct liability involves the party responsible for the harm acting independently, without involving a subordinate or employee's actions. Shared liability, on the other hand, refers to scenarios where multiple parties are responsible for the harm, but it does not specifically relate to the employer-employee context covered by vicarious liability.