Can an employer be liable to a third person for their negligence in hiring or retaining an employee who is incompetent or unfit?

The same would be true in the context of negligent hiring. "An employer may be liable to a third person for the employer's negligence in hiring or retaining an employee who is incompetent or unfit. [Citation.]" (Roman Catholic Bishop v. Superior Court (1996) 42 Cal.App.4th 1556, 1564-1565.) "'The principal may be negligent because he has reason to know that the... agent, because of his qualities, is likely to harm others in view of the work or instrumentalities entrusted to him.... If liability results it is because, under the circumstances, the employer has not taken the care which a prudent man would take in selecting the person for the business in hand.... [] Liability results... not because of the relation of the parties, but because the employer antecedently had reason to believe that an undue risk of harm would exist because of the employment....' [Citation.]" (Id. at p.1565.)