What is a principal NOT liable for regarding the actions of an independent contractor sales agent?

A principal is typically not liable for the tortious acts of an independent contractor sales agent, including actions such as assaulting a prospective buyer. This is primarily due to the nature of the relationship between the principal and the independent contractor. In general, independent contractors operate with a high degree of autonomy and are not under the direct control of the principal in the same way that employees are. As such, if an independent contractor commits an intentional act like assault, the principal is generally not held responsible for that act since it is outside the scope of the contractor’s work and not something that the principal has direct authority over.

In contrast, a principal may be liable for incidents involving financial transactions, negligence in disclosures, or customer complaints that stem from the contractor's actions if those actions are related to their work duties. This liability exists because, despite being independent contractors, they are still engaged in tasks that the principal has a vested interest in managing. Thus, while the independent contractor has autonomy, the engagement in business transactions or duty-related actions can still implicate the principal in certain circumstances.