The enterprise risk theory of vicarious liability

The theory of enterprise risk is increasingly being utilised to justify the imposition of vicarious liability upon an employer. Under this theory costs associated with ordinary risks of business are allocated to an employer, regardless of fault. It has been adopted and applied by courts in the United Kingdom, Canada and the United States. The article argues the Australian High Court has been correct to refuse to adopt such an approach. It is contrary to fault-based liability upon which much tort law depends, and is not justified by a deterrence rationale