The whole chapter basically revolves around the legal theory of respondeat superior which is also known as vicarious liability. Essentially, if an employee or whoever is doing something on behalf of an organization, that organization bears some liability for mishaps that occur as a result of doing the thing. These are some examples of places where it does or does not apply:

• Road mayhem
  • If your employee is conducting business for you on a journey, but on their off hours they create mayhem, you are not at fault
• Ratification
  • If you egg on one of your employees for doing shady stuff and then bad things happen, you are at fault
• Negligent hiring
  • If you hire someone shady without doing due diligence and shady things happen you are at fault
• Negligent retention
  • If one of your employees is doing bad things and you don’t stop it you are at fault
• Independent contractors
  • If you have an independent contractor and you are not exercising specific control over them, you are not at fault
  • Unless you didn’t do your due diligence in contracting them, then you are at fault (negligent selection)
• Volunteers
  • If your volunteer is doing something specifically under your control and shady stuff happens you are at fault
• Collegiate athletes
  • If you are a university and your student athlete punches someone you are not at fault (unless there was some patten you ignored maybe?)

So yeah that was fun.