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For example, a proprietor is liable if he or she is negligent when checkingqualifications and hires someone who is incompetent. In this situation,called negligent hiring, the proprietor will be held liable should an innocentthird party be injured by the negligence of the incompetent independentcontractor.A newly emerging doctrine, similar to negligent hiring, is negligentretention. This situation arises when a proprietor fails to fire a contractorafter learning that he or she is incompetent. If the contractor injuressomeone, the proprietor may be liable.Another situation that can open a proprietor to liability arises whenan independent contractor has been hired to perform a task that involvesa nondelegable duty. A nondelegable duty is one that the proprietor cannotpass off to another party.Example 8. To cut down on expenses, Rochester Railway decidedto hire an independent maintenance firm, Ilium Company (IC),to service its railway system. IC made several serious errors thatcaused a train wreck injuring several people. The injured partiessued both IC and Rochester. Even though Rochester could showthat IC was an independent contractor, it could not escape legalliability for the crash. A common carrier, such as a railroad, cannotdelegate its duty to maintain a system that protects the safetyof its passengers.Reviewing What You Learned1. What is an agency relationship?2. What is the difference between a servant andan independent contractor?3. What is the nature of contract liability?4. What is the legal doctrine of respondeatsuperior?Critical Thinking ActivityTort Law Why does the law permit an injuredparty to bring a tort law case against both anemployee and his or her employer?Legal Skills in ActionAgencyYour friend, Louis, has just hired Francoas his delivery driver. One afternoon while heis supposed to be making a delivery on the westside of town, Franco decides to take a 15-miledetour to the east side to pick up his drycleaning. While entering the parking lot of thedry cleaners, Franco makes an illegal turn andcollides with a police car. Louis fears he willbe liable not only for Franco’s traffic ticket butalso for all damages to the police cruiser. Writea letter to Louis in which you explain why youthink he won’t be liable for the traffic ticket orthe damage to the police cruiser.Chapter 18: Creation of an Agency 401