If an employee borrows a company car and has an accident, under what condition can the employer be liable?

The condition that establishes employer liability in this scenario revolves around the employer's negligence in entrusting the vehicle to the employee. This means if the employer had reason to believe that the employee was unfit to drive the company car—due to factors such as lack of a valid driver's license, a history of reckless driving, or inadequate training—the employer could be held liable for any resulting damages from an accident. The employer has a duty to ensure that employees are competent drivers when entrusted with company vehicles.

In contrast, while employee negligence can sometimes impact liability, the primary focus in this case is whether the employer acted appropriately in allowing the employee to use the car. Additionally, the personal use of the vehicle does not automatically negate employer liability; rather, the critical issue is whether the employee was acting within the scope of employment during the incident. Thus, the employer's own actions in the entrustment of the vehicle directly bear on potential liability.