All questions
Question 1
University Hospital's emergency department is staffed by physicians from Emergency Physicians Group, an independent practice. The physicians wear white coats embroidered with the University Hospital logo, and the hospital's website and waiting-room signs say 'University Hospital emergency physicians provide care around the clock.' A patient with chest pain is examined by Dr. Patel, a group physician. Dr. Patel misreads the EKG and sends the patient home. The patient later suffers a cardiac arrest and sues University Hospital.
Which legal theory most likely supports holding University Hospital liable for Dr. Patel's negligence?
- Apparent agency, because the hospital held Dr. Patel out as its physician and the patient reasonably relied on that appearance. (correct answer)
- Respondeat superior, because the hospital controlled the emergency department's operations and equipment.
- Negligent credentialing, because the hospital failed to verify Dr. Patel's qualifications before allowing her to practice there.
- Joint enterprise, because the hospital and the physician group were working together to provide emergency care.
Explanation: When you see a hospital-liability question involving a doctor who isn't a direct employee, your first thought should be about the theories that can make a hospital responsible for an independent contractor's negligence. The key is how the hospital presented the doctor to the patient. Here, the hospital's website, waiting-room signs, and the embroidered logo on Dr. Patel's white coat all created the appearance that Dr. Patel was a hospital physician. The patient, seeking emergency care, reasonably relied on that appearance. That's the heart of apparent agency—the hospital "held out" Dr. Patel as its own, and the patient's reliance is presumed in an emergency setting. So that theory most likely supports liability.
The other choices miss the mark. Respondeat superior fails because it requires an employment relationship or the right to control the physician's day-to-day work—here, Dr. Patel belongs to an independent group, even if the hospital oversees the department's operations and equipment. Negligent credentialing would require evidence that the hospital failed to verify Dr. Patel's qualifications; the passage gives no such facts. Joint enterprise is also wrong—that theory needs a shared purpose and mutual control between the hospital and the group, but they remain separate entities with distinct roles.
On the exam, spot the "holding out" clues—logos, uniforms, signs, or website language. If you see them, apparent agency is your answer, even when the doctor isn't an employee.
Question 2
A-Plus Temps supplied Hector, a forklift operator, to work at a warehouse owned by Bulk Storage, Inc. Under the staffing agreement, Bulk Storage's managers directed Hector's daily tasks and had the right to control the manner and means of his work; A-Plus did not supervise him at the warehouse. A-Plus's records showed that Hector had caused two prior forklift accidents because he texted while driving. A-Plus did not tell Bulk Storage about that history. One day, while operating a forklift under Bulk Storage's instructions, Hector struck and injured a delivery driver who was waiting at the loading dock. The delivery driver sued A-Plus.
Section 13 of the State Labor Code provides: "(a) A general employer that lends an employee to a special employer is not vicariously liable for the employee's torts while the employee is subject to the special employer's right to control the manner and means of the work. (b) A general employer remains liable for its own negligence, including negligent hiring or supplying an employee whom the general employer knows, or has reason to know, is incompetent or dangerous."
Is A-Plus liable to the injured delivery driver?
- No, because Bulk Storage had the right to control the manner and means of Hector's work, making Bulk Storage the temporary master.
- No, because A-Plus did not supervise Hector at the warehouse and did not cause the collision.
- Yes, because A-Plus, as the general employer, remains vicariously liable for Hector's torts even when a special employer controls the work.
- Yes, because A-Plus knew of Hector's dangerous texting history and supplied him to Bulk Storage without disclosing it, which is its own negligence. (correct answer)
Explanation: Whenever you see a general employer lending an employee to a special employer, your first instinct should be to separate vicarious liability from direct negligence. The borrowed-servant doctrine protects a general employer from respondeat superior liability when the special employer controls the work, but that shield does not cover the general employer's own carelessness.
Here, A-Plus is not vicariously liable—Bulk Storage's managers controlled Hector's manner and means, and the Labor Code §13(a) clearly transfers that liability to the special employer. But §13(b) preserves claims for the general employer's own negligence. The facts show A-Plus knew Hector had caused two prior accidents by texting while driving, yet it supplied him to Bulk Storage without disclosing that history. That is a classic negligent-hiring or negligent-supplying claim. A-Plus's knowledge and silence made it directly negligent, so it is liable—even though it did not supervise Hector at the warehouse.
The first wrong answer, "No, because Bulk Storage had the right to control," correctly identifies the borrowed-servant rule but ignores the exception for direct negligence—it treats the shield as absolute. The second, "No, because A-Plus did not supervise Hector," misses that negligence can occur before the employee ever steps onto the special employer's premises. The third, "Yes, because A-Plus remains vicariously liable," is backwards: the statute explicitly removes vicarious liability when the special employer controls the work.
Study tip: When a statute or doctrine limits vicarious liability, always check for an independent negligence claim—failure to warn, negligent hiring, or failure to investigate can create liability that the borrowed-servant rule does not preempt.
Question 3
A department store hires a licensed elevator repair company to replace a worn escalator step. The repair company is an independent contractor. While the work is underway, one of the repair company's employees leaves the escalator's access panel unguarded, and a customer falls into the opening and is injured. The customer sues the department store.
Which legal theory most likely supports the customer's claim against the store?
- Respondeat superior, because the repair company's employee was working on the store's premises for the store's benefit.
- Negligent hiring, because the store failed to investigate the repair company's safety record.
- Nondelegable duty, because the store owed its customers a duty to keep the premises reasonably safe during the repair work. (correct answer)
- Strict liability, because the repair work involved a dangerous condition on the premises.
Explanation: Whenever you see a premises injury involving an independent contractor, the key tension is responsibility versus control. The store must keep its premises reasonably safe for customers, and it cannot escape that duty merely by hiring someone else to do the work.
Here, the repair company's employee created an unguarded opening where a customer fell. That is exactly the kind of unsafe condition the store owes its customers a duty to prevent. Because that duty is nondelegable, the store remains liable even though the repair company was an independent contractor.
The other choices miss the mark. Respondeat superior would require an employer-employee relationship, but the repair company is an independent contractor, and the store does not control how the work is done. Negligent hiring could apply only if the store failed to investigate the contractor's safety record and that failure caused the harm—no facts support that. Strict liability is reserved for abnormally dangerous activities; repairing an escalator is a routine, if hazardous, maintenance task, not a blast or toxic spill.
The lesson: when a store hires an independent contractor to do work on its premises, the store's duty to customers remains firmly on the store. On a question like this, ask first whether the injured party is a customer on the premises—if so, the store's nondelegable duty usually controls, and labels like "independent contractor" are a trap meant to distract you.
Question 4
Dana and Ellis agree to buy, renovate, and resell a house together, splitting any profit equally. They drive together in Dana's car to inspect the property. They share the driving, split gas and lodging, and each has an equal say about the route and schedule. While Ellis is driving, he crosses the center line and collides with another motorist. The motorist sues Dana.
Which legal theory most likely supports holding Dana liable for Ellis's negligence?
- Joint enterprise, because Dana and Ellis shared a common business purpose and an equal right of control over the trip. (correct answer)
- Respondeat superior, because Dana and Ellis were co-owners of a business venture and Ellis was furthering it.
- Negligent entrustment, because Dana let Ellis drive her car without first checking his driving record.
- Apparent agency, because Dana held Ellis out as her agent for the house-purchase venture.
Explanation: When you see a question asking whether one person can be held liable for someone else's driving negligence, first identify the relationship between them. Vicarious liability can arise from employment, agency, or joint enterprise, but the test for each is different. Here, Dana and Ellis agreed to flip a house for profit and, critically, shared the driving equally, split costs, and had equal control over route and schedule. That combination of a common business purpose and equal right of control is the hallmark of a joint enterprise, making Dana liable for Ellis's negligence. In a joint enterprise, each participant is treated as the agent of the others for purposes of the venture.
The other choices miss the mark. Respondeat superior requires an employer-employee relationship, and co-owners of a business venture are not automatically employer and employee. Negligent entrustment would require Dana to have known Ellis was an unsafe driver before letting him drive her car, but nothing in the facts suggests that. Apparent agency requires Dana to have held Ellis out as her agent to the injured motorist, and the facts show no such holding out; Ellis was simply driving to inspect a property.
Study tip: when a facts pattern stresses shared purpose and shared control over the trip, choose joint enterprise. Ask yourself: did the defendant have a right to control how the driver drove? If yes, that points directly to the correct theory.
Question 5
Preston worked as a sales manager for Miller Office Supplies. Miller owned a company truck. Preston asked Miller if he could use the truck on Saturday to move furniture into his new apartment. Miller agreed. Miller knew that Preston's driver's license had been suspended for the past year after two DUI convictions, but Miller believed Preston's driving had improved. While Preston was driving the truck on Saturday, he ran a stop sign and collided with a motorcycle. The motorcyclist sued Miller.
Under the State Vehicle Entrustment Act: "An owner who entrusts a vehicle to a person whom the owner knows, or has reason to know, is incompetent, inexperienced, or reckless is liable for the person's negligent operation of the vehicle. Knowledge at the time of entrustment is sufficient; the owner's belief that the person has reformed is not a defense. An owner is not liable merely because the entrustee was acting outside the scope of employment if the elements of this section are met."
Is Miller liable to the motorcyclist?
- No, because Preston was not acting within the scope of his employment when the accident occurred.
- No, because Miller reasonably believed Preston's driving had improved and did not intend for him to drive negligently.
- Yes, because Miller knew of Preston's DUI history and suspended license, and entrusted the truck to him anyway. (correct answer)
- Yes, because Miller is vicariously liable for the negligent operation of any company vehicle by an employee, regardless of the purpose of the trip.
Explanation: Whenever you see a vehicle-accident claim against an owner, check for a special entrustment statute and focus on what the owner knew at the moment he handed over the keys. Here, the State Vehicle Entrustment Act supplies the rule: an owner who entrusts a vehicle to someone he knows or has reason to know is incompetent or reckless is liable for that person's negligent driving. Miller knew Preston had two DUIs and a suspended license, so he knew Preston was incompetent or reckless. That makes Miller liable.
The answer is not "No, because Preston was not acting within the scope of employment"—the statute explicitly says scope of employment is irrelevant when the entrustment elements are met. The answer is also not "No, because Miller reasonably believed Preston's driving had improved"—the statute says the owner's belief that the person has reformed is not a defense. So Miller's good-faith belief does not save him. Finally, avoid the trap in "Yes, because Miller is vicariously liable for the negligent operation of any company vehicle by an employee." That overstates respondeat superior liability; Miller is liable under the entrustment statute, not merely because the truck was a company vehicle or Preston was an employee.
Your study tip: when a statute supplies the rule, read it like a checklist. For entrustment, ask: (1) Did the owner entrust the vehicle? (2) Did the owner know or have reason to know the driver was incompetent or reckless? (3) Did that knowledge exist at the time of entrustment? If yes, liability follows—even if the trip was personal or the driver seemed reformed.
Question 6
At its peak season, Swift Parcel contracts with Temps Plus, a staffing agency, to supply delivery drivers. The contract says the drivers are employed by Temps Plus and that Temps Plus will pay their wages and benefits. Swift, however, assigns each driver's daily routes, sets delivery deadlines, supplies the vans and handheld scanners, and instructs drivers on how to handle packages. A Temps Plus driver, while following a Swift dispatcher's route instruction, runs a stop sign and injures a pedestrian. The pedestrian sues Swift Parcel.
Which issue is most important in determining whether Swift Parcel is liable for the driver's negligence?
- Whether Temps Plus remained obligated to pay the driver's wages and benefits during the assignment.
- Whether Swift Parcel had the right to control the manner and details of the driver's work when the accident occurred. (correct answer)
- Whether Swift Parcel conducted a background check on the driver before accepting the assignment.
- Whether the Temps Plus contract contained an indemnification clause covering accidents involving Swift's vehicles.
Explanation: Whenever you see a negligence suit against a business for the acts of a worker supplied by a staffing agency, think vicarious liability and the "borrowed servant" doctrine. Liability follows the right to control the work, not labels in a contract.
Here, Swift assigned routes, set deadlines, supplied the vans and scanners, and gave handling instructions. That strongly suggests Swift had the right to control the manner and details of the driver's work when the accident occurred. Even though Temps Plus formally employed the driver and paid wages, a temporary worker can become the borrowing employer's servant for liability purposes if that employer exercises control. The pedestrian's claim against Swift therefore rises or falls on whether Swift had that control.
The wrong choices miss the controlling principle. The fact that Temps Plus remained obligated to pay wages and benefits is not decisive; staffing contracts often keep payroll with the agency while the client directs the work. Whether Swift conducted a background check on the driver goes to negligent hiring, but a background check does not determine liability for the driver's on-the-job negligence. And an indemnification clause in the Temps Plus contract would only shift money between Swift and Temps Plus if Swift were liable; it cannot tell us whether Swift is liable to the pedestrian in the first place.
Study tip: in any borrowed-employee or contractor question, ask first, "Who had the right to control the details of the work?" That control is the key to vicarious liability.
Question 7
Grant lends his car to his neighbor Zoe so she can drive to a pharmacy. Zoe has a seizure disorder, and her driver's license was suspended after a recent seizure. While Zoe is driving, she has a seizure and the car hits a pedestrian. The pedestrian sues Grant.
Which additional fact would be most important in determining whether Grant is liable to the pedestrian?
- Whether Zoe was driving to the pharmacy for her own benefit rather than for Grant's benefit.
- Whether Grant had restricted Zoe's use of the car to the trip to the pharmacy.
- Whether Grant had been told by Zoe's neurologist that Zoe should not drive because of seizures. (correct answer)
- Whether Grant's automobile insurance policy covered permissive drivers and would pay any judgment.
Explanation: Whenever you see a question about a car owner being sued for someone else's driving, think of two separate theories: vicarious liability (like an employer or family purpose doctrine) and direct negligence, especially negligent entrustment. Negligent entrustment requires that the owner knew or should have known the driver was incompetent or dangerous, and then gave the driver the keys anyway. So the critical fact is what Grant knew about Zoe's driving risk. If Grant had been told by Zoe's neurologist that Zoe should not drive because of seizures, that warning directly establishes Grant's awareness of the danger. Lending the car despite that warning would make Grant liable for the foreseeable harm to the pedestrian.
The fact that Zoe was driving for her own benefit rather than Grant's might matter for an agency or "mission" theory, but it does not address Grant's knowledge, and a borrower's purpose does not immunize an owner from negligent entrustment. Similarly, whether Grant restricted Zoe's use to the pharmacy trip shows the scope of permission, not whether granting permission was negligent—you can negligently entrust a car for a short, specific trip. Whether Grant's insurance covers permissive drivers is about indemnity and payment, not tort liability; insurance coverage never determines whether a defendant is legally liable.
Your study tip: separate "whose negligence?" from "who pays?" For owner-liability questions, focus on the owner's knowledge of the driver's unfitness—that is the heart of negligent entrustment.
Question 8
RitePak, Inc. employed Maya as a regional manager. Her duties included occasionally transporting company documents between RitePak's warehouse and its downtown office. One Saturday, Maya drove to the warehouse for a purely personal reason: to pick up a birthday gift a coworker had left for her. While at the warehouse, she noticed a folder of time-sensitive shipping manifests that she knew had to reach the downtown office by Monday. She decided to take the folder downtown. On the way, she ran a red light and struck a pedestrian, who sued RitePak.
In Ridgefield v. RitePak, the state supreme court explained: "Under respondeat superior, an employer is liable for torts an employee commits within the scope of employment. An act is within the scope when it is the kind the employee is employed to perform, occurs substantially within authorized time and space, and is done, at least in part, to serve the employer. Ordinary travel to and from work is not within the scope. When a trip combines personal and business purposes, it is within the scope only if the business purpose was a concurrent cause of the trip. A business purpose added as an afterthought to a personal trip is not a concurrent cause and does not satisfy the 'at least in part' requirement."
Is RitePak liable to the pedestrian?
- No, because the manifest delivery was an afterthought, so the trip was not made for a concurrent business purpose; RitePak therefore has no vicarious liability. (correct answer)
- No, because Maya was off duty on Saturday, and an act occurring outside the authorized period of employment cannot be within the scope of employment.
- Yes, because carrying company documents was the kind of work Maya was employed to perform, and she acted at least in part to serve RitePak.
- Yes, because the trip began at a RitePak facility and involved a company document, making RitePak the beneficiary of the trip.
Explanation: Whenever you see a vicarious liability question, your first move is to test each element of the scope-of-employment rule—especially the "concurrent cause" requirement when the employee's trip mixes personal and business motives. Here, the state supreme court's holding gives you the exact standard: a business purpose added as an afterthought to a personal trip is not a concurrent cause. Maya's primary trip was personal—picking up a birthday gift—and she only noticed the manifests after arriving. Her delivery was a late addition, not a motivating cause of the trip. Therefore, the act fails the "at least in part to serve the employer" test, so RitePak is not liable. That makes the correct answer the one stating the delivery was an afterthought.
The wrong choices each miss a key point. The choice saying "Maya was off duty on Saturday" is too rigid—scope can extend to off-hours if the act serves the employer and occurs within authorized space and time, though here the timing alone isn't decisive. The choice that "carrying company documents was the kind of work" ignores that the kind-of-work test is necessary but not sufficient; the concurrent-cause requirement still fails. The choice about "trip began at a RitePak facility" wrongly equates physical origin or benefit with legal causation—mere benefit to the employer doesn't create vicarious liability when the trip's primary purpose was personal.
Study tip: for mixed-motive trips, ask why the employee was on the road at the moment of the tort. If the business purpose was a genuine, independent motivation for the trip, liability attaches; if it's an afterthought, it doesn't.
Question 9
Homeowner hired Blastco, an independent contractor, to remove a large boulder in his backyard by explosives. The contract required Blastco to comply with all applicable safety regulations. To reduce costs, Blastco's foreman directed the crew to set off the blast without using a required blast mat. The blast launched a rock fragment that damaged a neighbor's roof. The neighbor sued Homeowner.
Section 210 of the State Tort Code provides: "One who employs an independent contractor to do work that the employer knows or should know is likely to create a peculiar risk of physical harm to others unless special precautions are taken is liable for harm caused by the contractor's failure to take those precautions. A peculiar risk is a risk inherent in the work itself and foreseeable at the time the work is contracted. This section does not apply to harm resulting from a contractor's collateral or casual negligence that is not a failure to take a precaution against the peculiar risk."
Is Homeowner liable to the neighbor?
- Yes, because Homeowner is strictly liable for all harm caused by any independent contractor he hires, regardless of the nature of the work.
- Yes, because the risk of flying rock fragments is a peculiar risk of blasting, and Blastco failed to take the special precaution of using a blast mat. (correct answer)
- No, because Homeowner hired Blastco as an independent contractor and did not control the manner in which the blasting was performed.
- No, because the foreman's decision to omit the blast mat was collateral to the blasting work and was not a foreseeable failure to take a special precaution.
Explanation: When you see a question about a landowner or employer being sued for the acts of an independent contractor, start with the general rule: the hirer is not liable for the contractor's negligence. But an exception applies when the work involves a "peculiar risk"—a foreseeable, inherent danger that requires special precautions. That exception is exactly what this question tests.
Blasting is the classic inherently dangerous activity, and flying rock fragments are the precise peculiar risk it creates. The blast mat was the required special precaution against that risk. Because Blastco failed to use it, Homeowner is liable under Section 210, even though Blastco was an independent contractor and the contract required compliance with safety regulations.
The choice saying Homeowner is strictly liable for all harm caused by any independent contractor overstates the rule: liability exists only for peculiar risks, not every act. The choice saying Homeowner is not liable because he did not control the blasting reflects the general rule but ignores the peculiar-risk exception. Finally, the choice claiming the foreman's decision to omit the blast mat was collateral negligence misreads the statute: collateral negligence is unrelated, casual negligence, not the contractor's failure to take the very precaution aimed at the peculiar risk. Omitting the blast mat is directly tied to the risk of flying rock fragments.
For the exam, when an independent contractor case involves inherently dangerous work, ask: Did the harm arise from the peculiar risk, and did the contractor fail to take a special precaution? If yes, the hirer is liable.
Question 10
Dario worked as a bouncer at the Monarch Club. His job included ejecting unruly patrons. One night, at closing, Dario escorted a patron out of the club and onto the sidewalk after the patron refused to leave. The patron walked away down the street, then turned and shouted an insult at Dario. Dario ran across the street, grabbed the patron, and punched him, breaking his jaw. The patron sued Monarch Club.
In Trujillo v. Monarch Club, the court held: "An employer is vicariously liable for an employee's intentional tort when the tort is a foreseeable outgrowth of the employment, occurs within the time and space of the employment, and is done, at least in part, to serve the employer. The employer is not liable when the employee acts purely out of personal malice or revenge. Force used to eject a patron is foreseeable and within the scope. But when the patron has been ejected and is no longer a threat, a bouncer's continued pursuit and attack is an act of personal retaliation, not a foreseeable outgrowth of the employment."
Is Monarch Club liable to the patron?
- Yes, because Dario was acting in the scope of his employment as a bouncer, and the use of force to eject patrons is foreseeable.
- Yes, because the fight began as an ejection and the assault was a direct continuation of that employment-related confrontation.
- No, because an employer is never vicariously liable for an employee's intentional torts, even if the employee was on duty.
- No, because the ejection had ended and Dario's pursuit and punch were acts of personal retaliation, not done to serve Monarch Club. (correct answer)
Explanation: When you see a vicarious-liability question involving an employee's intentional tort, focus on the scope of employment: Was the act foreseeable, within time/space of work, and done at least partly to serve the employer? Personal malice or revenge breaks liability.
Here, Dario's initial ejection was within scope, but the patron had already walked away down the street. The pursuit across the street and punch came after the ejection ended and after any threat was gone; it was personal retaliation, not done to serve Monarch Club. So the club is not liable. That makes the choice reading "No, because the ejection had ended and Dario's pursuit and punch were acts of personal retaliation, not done to serve Monarch Club" correct.
The first wrong choice — "Yes, because Dario was acting in scope as a bouncer, and use of force to eject patrons is foreseeable" — ignores that the ejection was complete; foreseeability of ejection force doesn't cover later revenge. The second wrong choice — "Yes, because the fight began as an ejection and assault was a direct continuation" — traps you into thinking temporal proximity equals scope, but the rule explicitly says once patron is ejected and no longer a threat, continued pursuit is personal. The third wrong choice — "No, because an employer is never vicariously liable for intentional torts" — is too broad; employers can be liable for intentional torts, including bouncers' ejections, when the tort serves employment.**
Strategy: Separate the employment task from the employee's personal reaction. Ask: at the moment of the tort, was the employee still doing the job — or settling a private score?
Question 11
Raheem is a bouncer at The Vault, a nightclub. One evening, a patron named Sam accidentally spills a drink on Raheem's girlfriend, who is at the club. Raheem, while on duty, immediately grabs Sam, drags him out the back door, and punches him. Sam sues The Vault. The club has a written policy, known to Raheem, prohibiting bouncers from using force except to break up fights.
Which additional fact would be most important in determining whether The Vault is liable for Raheem's assault?
- Whether Raheem was wearing his Vault uniform and was being paid for his shift at the time.
- Whether The Vault had received prior complaints about Raheem acting aggressively toward patrons.
- Whether Sam's injuries required hospitalization, surgery, or only minor first aid.
- Whether Raheem's primary purpose in confronting Sam was to protect the club's patrons or to retaliate for the insult to his girlfriend. (correct answer)
Explanation: Whenever you see an intentional tort committed by an employee, your mind should jump to vicarious liability under respondeat superior. The pivotal question is whether the employee was acting within the scope of employment, which requires that the act be at least partly motivated by a desire to serve the employer's business, not purely personal motives. The most important fact here is whether Raheem's primary purpose was to protect the club's patrons or to retaliate for the insult to his girlfriend. If he was protecting patrons, the assault could fall within the scope of employment, making The Vault liable despite its policy. If he was purely retaliating for a personal insult, he has stepped outside the scope, and The Vault is not liable under respondeat superior — even though he was on duty. The fact about wearing his uniform and being paid is relevant to showing he was "on the clock," but an on-duty employee can still commit a purely personal tort for which the employer is not liable. Prior complaints about Raheem's aggressiveness might support a separate claim for negligent hiring or retention, but they don't determine vicarious liability for this specific assault. The severity of Sam's injuries affects the amount of damages, not the determination of liability itself. Remember: for intentional torts, scope of employment hinges on the employee's motive — ask whether the act furthered the employer's business or was purely personal.
Question 12
Marisol went to City Hospital's emergency room with severe headache and confusion. At registration, a clerk gave her a clipboard with several forms. On the third page, in small gray print at the bottom, one form stated: "The physicians providing care at City Hospital are independent contractors and are not employees or agents of the hospital." The clerk told Marisol to "sign each page so we can start your care." Marisol signed without reading the forms. Dr. Patel, a physician who had an independent contractor agreement with the hospital, examined Marisol and negligently failed to recognize a stroke. Marisol suffered permanent harm. She sued City Hospital.
In Ortiz v. City Hospital, the court held: "A hospital may be liable under apparent agency for the negligence of an independent-contractor physician when the hospital holds itself out as providing medical care, the patient looks to the hospital, not the physician, for care, and the patient is not on notice that the physician is an independent contractor. A written notice defeats apparent agency only if it is conspicuous and the patient has a meaningful opportunity to read it; a form buried in an admission packet and signed under pressure to begin treatment is not meaningful notice."
Is City Hospital liable to Marisol?
- No, because Dr. Patel was an independent contractor, and the hospital neither employed him nor controlled the manner and means of his medical treatment.
- No, because Marisol signed a form stating that the physicians were independent contractors, and that form gave her notice as a matter of law.
- Yes, because the hospital is strictly liable for all medical care provided in its emergency room, regardless of who provided it or whether notice was given.
- Yes, because City Hospital held itself out as providing emergency care, Marisol looked to the hospital for care, and the buried, small-print form did not provide meaningful notice. (correct answer)
Explanation: Whenever you see a hospital liability question involving independent-contractor physicians, your immediate focus should be on apparent agency, not actual employment. The test isn't whether the hospital controlled the doctor's actions, but whether the hospital created an appearance that the doctor was its agent, and the patient reasonably relied on that appearance. Here, City Hospital holds itself out as providing emergency care, and Marisol looked to the hospital for treatment—she didn't choose Dr. Patel personally. The only defense is the notice, but the court in Ortiz makes clear that a signed form only defeats liability if it is conspicuous and provides a meaningful opportunity to read. The form here was buried in small gray print on the third page of an admission packet, signed under pressure to begin care—precisely what the court rejects as "not meaningful notice." Thus, the hospital is liable.
Now, examine the wrong answers. The choice arguing "no liability because Dr. Patel was an independent contractor and the hospital neither employed nor controlled him" misses the point—control relates to actual agency, whereas this claim rests on apparent agency, which focuses on the patient's perspective. The choice claiming "no liability because Marisol signed a form stating they were independent contractors" incorrectly treats a signature as dispositive notice; as the rule states, a buried form signed under pressure is ineffective. Finally, the choice asserting "yes, because the hospital is strictly liable for all medical care" overstates the law—hospitals aren't strictly liable, but they are liable here because the elements of apparent agency are satisfied.
Your study tip: distinguish actual agency (control) from apparent agency (holding out + reliance). When you see a form or notice, ask whether it was truly conspicuous and whether the patient had a real chance to read it—courts are very strict on this.