Which of the following actions can lead to liability under agency policy or custom?

Adopted policies leading to violations can lead to liability under agency policy or custom because these policies are established standards that guide the conduct of officers and the functioning of the agency. When an agency enacts a policy that is itself contrary to legal or ethical standards, and an officer acts in accordance with that policy, the agency can be held liable for the consequences of those actions. This connection underscores the importance of having policies that comply with laws and regulations, as they shape the behavior of personnel and can lead to significant legal repercussions if found to be in violation of established norms or laws.

Other actions listed, while potentially problematic, do not directly result in liability under agency policy in the same way. Approved spending typically involves financial management and does not inherently invoke legal issues unless tied to illegal expenditure. Ignoring local laws can lead to individual liability for officers, but it does not necessarily stem from an agency policy or custom itself. Finally, simply being on-duty does not imply any actions that would automatically lead to liability; the context of an officer's conduct while on-duty is what determines liability under the agency's policies or customs.