What principle establishes that one party may be responsible for the negligent acts of another?

Vicarious liability is a legal principle that holds one party responsible for the negligent actions of another, typically occurring in an employer-employee relationship. Under this principle, an employer can be held liable for the negligent acts of employees performed within the scope of their work. This ensures that victims have a means of seeking compensation for the harm caused, as employers usually have greater financial resources than individual employees.

In contrast, gross negligence refers to a severe degree of negligence that reflects a reckless disregard for the safety of others, but it does not pertain to the concept of one party being liable for another's actions. Punitive damages are awarded in cases of gross negligence or willful misconduct to deter such behavior in the future, rather than establishing liability for another's negligence. Statutes of limitations are laws that set the maximum time period for bringing a lawsuit, but they do not determine liability or responsibility for negligent acts. Understanding vicarious liability is crucial in assessing liability in various situations involving an employer and its employees or other similar relationships.