Tennessee Private Investigator License Exam Prep 2026

The correct response is that the licensed private investigation company is responsible for the actions of an undercover investigator it employs. This principle is rooted in the legal doctrines of vicarious liability and agency. When an investigator operates as an agent of the licensed PI company, the company assumes liability for the agent's actions performed within the scope of their employment.

This means that if the undercover investigator engages in conduct that is negligent or unlawful while acting on behalf of the company, the company can be held accountable. The rationale behind this is to protect the public and ensure that PI companies maintain proper oversight and training of their employees. It emphasizes the importance of maintaining ethical standards and compliance with the law within the practicing community.

The other choices do not fully account for the legal responsibilities placed upon the licensed PI company in this context, which is why the sole responsibility cannot rest with the individual investigator nor can it be said that no one is responsible. Sharing responsibility may apply in certain scenarios, but primary accountability lies with the licensed entity.