Under what circumstance is a business legally liable for the negligence of its employees?

A business is legally liable for the negligence of its employees primarily when the employees act within the scope of their employment. This principle is rooted in the legal doctrine known as "respondeat superior," which holds an employer responsible for the actions of its employees when those actions occur during the course of their employment.

The rationale behind this concept is that employers have a certain level of control over their employees and should bear the responsibility for the consequences of their actions while they are performing their job duties. This includes situations where the employees may not have acted with the highest degree of care, leading to damage or injury to third parties.

In contrast, if employees act outside the scope of their employment, such as engaging in personal activities or committing illegal acts unrelated to their job duties, the employer typically does not bear responsibility for those actions. Similarly, if employees commit fraud intentionally, they are usually acting for personal gain and not in the interest of their employer, which further limits the employer's liability. When employees are on break, they are generally not performing job-related tasks, thus falling outside the scope of employment.