Respondeat Superior

Categories: Regulations

Well, this one's in Latin, so it's either a legal term or an incantation for raising the devil. Without going into which one of those choices might be worse, we'll just end the suspense: it's a legal term.

The phrase "respondeat superior" means "let the master answer." Which, again, makes it sounds like part of a devil-raising ceremony. But in this case, the "master" has to do with an employer or principal. The concept states that, if someone acting on your behalf does something that prompts a lawsuit, you can be liable. The liability attaches to the employer as much as the employee.

You work for a dog-walking company. One day, while taking a bunch of mutts out for a walk, you get thirsty. You tie all the dogs up outside a Smoothie Hut and run inside to pick up a quick treat. By the time you come back out, all the dogs are gone.

The owners want to sue. You're the one who lost them, but because you were working for a dog-walking company at the time, the owners can try a little respondeat superior; they can sue the company as well. The doctrine makes your employer liable for your actions when working as an agent of the firm.



Find other enlightening terms in Shmoop Finance Genius Bar(f)