BLS 342 test 4 (final)

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BLS 342 test 4 (final)
2013-05-03 18:25:26
BLS 342

Miami University business law, Becker
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  1. Agency relationship
    • Principal
    • Agent
    • Third party

    consentual relationship, usually contractual
  2. Agent
    Enters into contracts on behalf of the principal, so usually not liable
  3. When Agents commit torts
    Third Party can sue the principal under the doctrine of respondeat superior
  4. Agent's authority
    • express
    • implied
    • apparent
    • (ratification)
    • (by operation of law)
  5. Apparent authority
    principal gives the appearance that a person is his agent when he isn't.

    • e.g. fired a past agent but the third party doesn't know about it
    • view it from reasonable Third Party reliance
  6. Ratification
    • express-tell agent it was ok, despite the fact they acted outside their authority
    • Implied-keep the money etc. when you know it comes from unauthorized conduct
  7. By operation of Law
    • Necessaries-you become the agent for your spouse and children
    • Emergency- should try to notify the principal, then act reasonably under the circumstances, if you don't you're liable
  8. Principal is liable for the agent when:
    agent acts under the scope of his authority
  9. Independent contractor
    • The employer has a relative lack of control
    • employer is not liable if the independent contractor hurts a third party

    unless it is a non-delegable duty
  10. non-delegable duty
    • employer is liable even if they hired an I.C.
    • landlord liable for fixing stairs, city fixing road, railroad
  11. Fiduciary duties of principal
    • Duty of Compensation
    • Reimbursement and Indemnification
    • Cooperation
    • Safe working conditions
  12. Duty of Compensation
    The principal has a duty to compensate the agent for services provided unless the parties have agreed that the agent will act gratuitously
  13. Reimbursement and Indemnification
    The principal has a duty to reimburse or indemnify the agent for any authorized expenditures or any losses the agent incurs in the course of working on behalf of the principal.
  14. Cooperation
    The principal must assist the agent in the performance of his or her duties and cannot interfere with the reasonable conduct of the agent.
  15. Safe Working Conditions
    The principal has a duty to ensure safe working conditions and to warn the agent if the principal is aware of any potential danger.
  16. Fiduciary duties of the Agent
    • Loyalty
    • Notification
    • Obedience
    • Accounting
    • Performance
  17. Loyalty
    The agent has a responsibility to act in the best interest of the principal; this duty is important because the agency relationship is founded on trust.
  18. Notification
    The agent must notify the principal of any relevant information in a timely manner.
  19. Obedience
    The agent must follow the lawful instruction and direction of the principal.
  20. Accounting
    The agent must keep an accurate account of the transactions made on behalf of the principal and provide the accounting information to the principal on request.
  21. Performance
    The agent must perform the duties as specified in the agency agreement with reasonable skill, care, and professionalism.
  22. Principal's rights and remedies
    • Constructive Trust
    • Avoidance
    • Indemnification
  23. Agent's rights and remedies
    • Tort and Contract Remedies
    • Demand for an Accounting
    • Specific Performance