Which of the following scenarios exemplifies negligent entrustment?

Negligent entrustment occurs when a party allows another individual to use an item or property, typically a vehicle, knowing that the person is likely to misuse it or that there is a risk of harm due to their actions. In this scenario, renting a vehicle to an impaired driver embodies this principle, as the rental company or individual would be aware that the impaired driver does not have the capacity to operate the vehicle safely. This situation creates a high risk of accidents or injury, and the act of renting the vehicle under those circumstances demonstrates a failure to exercise reasonable care in ensuring that the driver is fit to operate the car.

On the other hand, loaning a vehicle to a licensed driver or renting a vehicle with proper maintenance records does not illustrate negligent entrustment because both actions involve giving access to individuals who are presumed capable of using the vehicle safely. Similarly, providing a vehicle for employees to use for business does not inherently reflect negligent entrustment unless the employer has specific knowledge about an employee’s impairment or unsuitability to drive. Thus, the key aspect that makes the scenario of renting to an impaired driver exemplify negligent entrustment is the knowledge of the driver's impairment and the associated risk it poses.