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find a buyer who would pay $250,000. ICA negotiated a dealwith Ted Martineau, who agreed to that price. In this situation,ICA is both an independent contractor and an agent.Tort LiabilityThe distinction between the master-servant relationship and theproprietor-independent contractor relationship is also important in determiningtort liability (see Figure 18.2). All people are responsible fortheir own tortious conduct. Sometimes, however, the person who hiredthe tortfeasor may also be held liable. This situation is known as vicariousliability, and it is founded on the principle of respondeat superior , orlet the master respond. Typically, respondeat superior applies to masterservantrelationships because the master has the right to control thephysical conduct of the servant. In contrast, a proprietor usually doesn’thave that right with an independent contractor.The right to control the physical conduct of the servant is not theonly distinction between these relationships. The court may considerseveral other factors by asking any of the following specific questions:Figure 18.2Servantcommits tortagainstthird partyBoth masterand servantare liableYesWasservant actingwithin scope ofauthority or course ofemployment?Master may haveto pay damagesunless servantagrees to payRESPONDEATSUPERIORThis chart shows theflow of master/servanttort liability under therespondeat superiordoctrine. How do thecourts defend the useof respondeatsuperior in tort cases?NoOnly servantis liableIf master is suedand is forced to paydamages, then heor she can seekindemnificationfrom servantChapter 18: Creation of an Agency 397