4.1 Elements of tort negligence
According to the employment rights act of 1996, the firm is responsible for the acts conducted by their employees and employers need to focus on the behaviors of their employees. If their employees are showing negligence, they will be held responsible for paying the damages. After analyzing the elements of tort, it can be clearly observed that Peter and his firm are liable for paying the damages. All the elements of tort law were fulfilled and this indicates that the act of negligence is conducted by the employee of the firm. In this situation, Peter needs to look in the contract of this employee. He needs to conduct written contract with his employees in future about such acts and how will employees get the responsibility and liability in such situations and misconduct (Aatiya, 2000)
4.2 Elements of vicarious liability
Employer can fire the employee if he was found guilty of misconduct. If misconduct is related to minor issue, in such situation the course of action by the employer will be in the form of written punishment and warning. If the employee was caught again for the misconduct he must be fired from the organization. In the current situation employees of the organization were not included in the misconduct and they followed proper rules and regulations. The child fell down because of his mistake. If this situation was performed by some apprentice and if he was found guilty of misconduct, he could be given a warning by the employer because he is in the phase of learning.