Correct option is C
Vicarious liability arises when one party is held liable for the wrongful acts committed by another party due to the nature of their relationship. The most common example is the Master-Servant relationship, where the master is held liable for the torts committed by the servant in the course of employment. A critical aspect of this relationship is the master's control over the manner in which the work is done.
A (Correct): Vicarious liability is based on the relationship of Master-Servant.
B (Incorrect): If the master has no control over the manner of doing work, it may indicate an independent contractor rather than a servant.
C (Correct): The tort must be committed in the course of employment for vicarious liability to apply.
D (Correct): Control by the master over how the work is done is a key test for identifying a Master-Servant relationship.
Information Booster: The "Control Test" is a traditional test to establish vicarious liability, but modern tests may include the "Organization Test" and "Multiple Test" to determine the employment relationship.
Additional Information: Vicarious liability does not generally apply to acts done outside the course of employment or by independent contractors, unless exceptions apply.