SDCL § 59-6-9: Responsibility of principal for agent's negligence or omission.

Unless required by or under authority of law to employ that particular agent, a principal is responsible to third persons for the negligence of his agent in the transaction of the business of the agency, including wrongful acts committed by such agent in and as part of the transaction of such business; and for his willful omission to fulfill the obligation of the principal.

See Cal Civ Code, § 2338.