What is vicarious liability in the context of Maryland agency relationships?

Vicarious liability in the context of Maryland agency relationships refers to the principle that a principal can be held accountable for the actions of their agents, provided those actions occur within the scope of the agent's duties. This means that if an agent acts while engaged in performing tasks on behalf of the principal, the principal may be legally responsible for any harm or wrongdoing that results from those actions. This legal concept is essential as it promotes accountability and encourages principals to properly supervise and train their agents to minimize the risk of liability.

The other choices do not reflect the essence of vicarious liability. While it's true that principals are responsible for their own actions, they can also be held responsible for the negligent or wrongful acts of their agents when those acts relate to their agency duties. Agents generally are not liable for the actions of their principals; rather, their liability primarily comes into play in relation to their own conduct. Furthermore, the assertion that principals are exempt from legal actions contradicts the foundational principle of vicarious liability, which specifically holds principals accountable under certain circumstances.