Business Ethics Paper on Cyber-Liability

Topics: Computer, Privacy, Tort law Pages: 22 (5538 words) Published: May 26, 2014
CONTENTS

NO.

TITLE

PAGE

1

QUESTION 1:-
Discuss vicarious liability and cyber-liability.

2 – 5

2

QUESTION 2:-
List the top categories of litigation of cyber-liability.

6 – 7

3

QUESTION 3:-
Draft a guideline on cyber-liability for students in University Malaysia Sabah.

7 – 9

4

REFERENCES

10 – 11

5

APPENDIX

12 – 20

Question 1: Discuss vicarious liability and cyber-liability.

(1) Vicarious Liability
Definition
Vicarious liability is a situation in which one party is held partly responsible for the unlawful actions of a third party. The third party also carries his or her own share of the liability. Vicarious liability can arise in situations where one party is supposed to be responsible for (and have control over) a third party, and is negligent in carrying out that responsibility and exercising that control. For example, an employer can be held liable for the unlawful actions of an employee, such as harassment or discrimination in the workplace. Even though the employer is not the one who committed the unlawful act, the employer is held liable because it is considered responsible for its employees' actions while they are on the job and it is considered to be able to prevent and/or limit any harmful acts performed by its employees. The employer may be able to avoid vicarious liability by exercising reasonable care to prevent the unlawful behavior. Another common source of vicarious liability occurs when a child behaves negligently. The parent can sometimes be held vicariously liable for the child's actions. One situation where this might occur is if a child injures or kills someone while driving. Vicarious liability was also define as the tort doctrine that imposes responsibility upon one person for the failure of another, with whom the person has a special relationship (such as parent and child, employer and employee, or owner of vehicle and driver), to exercise such care as a reasonably prudent person would use under similar circumstances. To claim under the tort of vicarious liability, firstly, someone should know all the requirement of vicarious liability should be establish first in order to claim under the tort of vicarious liability. The requirements are as the following:- There must be a wrongful tortious act

There must be special relationship between employee-employer The tort must occur within the course of employment
Example of Case of Vicarious Liability:-
(i) Lister v Helsey Hall Limited (2001)
This case is about the sexual abuse by a warden of a school boarding house to a student. The issue of this case is whether the warden’s action in abusing the pupil was closely connected with employment would it be fair and just to hold his employers liable. Result: The company which owned and ran the school was responsible for the warden conduct as the warden responsibilities include the welfare and safety. It was considered that vicarious liability would not apply to other employees. (ii) Limpus v London Omnibus and Co.

In this case, the driver of the bus in order to overtake another bus was driving in a very rash and negligent manner and hence ended up injuring the plaintiff. The catch in this case is such a tendency was known to the employer and he had prohibited the driver from doing so. Result: Clearly the servant has acted negligently and the master then becomes vicariously liable. (iii) Ricketts v Thomas Tilling Ltd.

The driver who had been authorized to drive the bus, feels tired and asks the conductor to drive the bus for some time. The conductor while driving the bus, does so quite negligently and hurts a pedestrian X. X brings a suit against the bus company. Will he succeed? Result: By a clear application of the principle of wrongful delegation, it is quite conclusive that the master is liable. Hence X will succeed.

(2) Cyber-Liability
Definition
Any organization operating a Web site or conducting...

References: Daniel, J. S. 2008. In Understanding Privacy. Cambridge, MA: Harvard University Press.
Houlton, S. 2011. Insurance Coverage for the Computer Age (Cyber-Security Policies Needed
To Deal with Data Loss and Theft): Connecticut Law Tribune an ALM Publication
Neyers, J. W. 2005. A Theory of Vicarious Liability. 43(2): 1-41.
Stephens, S. & Fort, S. 2008. Cyber Liability & Higher Education Aon Professional Risk Solutions
White Paper: AON Risk Services
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