Chapter 6 Discussion Vicarious Liability
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Running Head: VICARIOUS LIABILITY
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Vicarious Liability
Boming Liu
Howard Community College
9/24/2020
VICARIOUS LIABILITY
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1.
What is the difference between Elon Musk & President Trump's positions in
leadership?
In the case that the article presents about Musk's wrongdoing through his tweets, the view
of the act would be different if it were Donald Trump. Also, the solutions differ. President
Trump's position would apply a criminal procedure, whereas Tesla Company used a civil
procedure.
In a criminal procedure, a prosecutor representing the government brings the criminal
case. On the other hand, a body in charge, a government entity, a business, or a corporation,
brings forward the concern in a civil case. For instance, in this case, Gara (2018) states that “the
SEC charged the billionaire with fraud, accusing him of manipulating markets by tweeting out
the speculative and incredible buyout offer.”
For President Trump’s position, the goal of the solution is punishment by criminal fines
and imprisonment, but numerous constitutional principles safeguard the defendant. The reason
for this is that the effects of losing a criminal case for the president are more serious than losing a
civil case. This approach is different from Musk's perspective as the objective is to create
remedies for the plaintiff's mistakes and other damages.
2.
Was Tesla held vicariously liable for Elon Musk's tweets?
Yes. Tesla and Musk paid a fine of $20 million each. This was aimed at the fraud suit and
resolve the matter without taking further action (Gara, 2018). In such cases, vicarious liability’s
central principle is that the public’s interests are more significant than the interests of an
organization. Tesla lost customers, investors, money, and respect because of Musk’s tweets. The
organization had to hold the chairman vicariously liable to fix the damage.
VICARIOUS LIABILITY
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3.
Based on the concept of vicarious liability, please analyze whether or not vicarious
liability can apply to President Trump's actions while in office, and if so, who will be
held vicariously liable?
Although sovereign immunity protects the president from civil lawsuits, vicarious
liability applies to President Trump's actions. If the president breaks the law, the state will charge
[him or her] with a crime. However, the consequences would depend on the specific law and the
individual's wrongdoing. President would be held responsible for his actions either by
impeachment or indictment (Golden, 2018).
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VICARIOUS LIABILITY
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References
Gara, A. (2018, October 1).
Billionaire Elon Musk's $40 Million Tweet May Be A Blessing For
Tesla After Settling Fraud Suit
.
https://www.forbes.com/sites/antoinegara/2018/09/30/billionaire-elon-musks-40-million-
tweet-may-be-a-blessing-for-tesla-after-settling-fraud-suit/
.
Golden, H. (2018, December 14).
What Might Happen If A President Breaks The Law Isn't As
Simple As You Think
. Elite Daily.
https://www.elitedaily.com/p/what-happens-if-a-
president-breaks-the-law-its-complicated-15525257
.