Business Law

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Business Law
2011-05-03 14:43:37
Chapter Thirty Two

Liability to Third Parties and Termination
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  1. In Latin, Let the master respond. A doctrine under which a principal or an employer is held liable for the wrongful acts committed by agents or employees while acting within the course and scope of their agency or employment.
    • respondeat superior
    • (pronounced ree-spahn-dee-uht soo-peer-ee-your)
  2. Authority that is only apparent, not real. In agency law, a person may be deemed to have had the power to act as an agent for another party if the other party's manifestations to a third party led the third party to believe that an agency existed when, in fact, it did not.
    Apparent Authority
  3. A principal whose identity is known to a third party at the time the agent makes a contract with the third party.
    Disclosed Principal
  4. A computer program, electronic, or other automated means used to perform specific tasks without review by an individual.
  5. In most states, a rule stating that express authority given to an agent must be in writing if the contract to be made on behalf of the principal is required to be in writing.
    Equal Dignity Authority
  6. Authority expressly given by one party to another. In agency law, an agent has _____ to act for a principal if both parties agree, orally or in writing, that an agency relationship exists in which the agent had the power (authority) to act in the place of, and on behalf of, the principal.
    Express Authority
  7. Authority that is created not by an explicit oral or written agreement but by implication. In agency law, ____ (of the agent) can be conferred by custom, inferred from the position the agent occupies, or implied by virtue of being reasonably necessary to carry out express authority.
    Implied Authority
  8. A public official authorized to attest to the authenticity of signatures.
    Notary Public
  9. A principal whose identity is unknown by a third person, but the third person knows that the agent is or may be acting for a principal at the time the agent and the third person form a contract.
    Partially Disclosed Principal
  10. A written document, which is usually notarized, authorizing another to act as one's agent; can be special (permitting the agent to do specified acts only) or general (permitting the agent to transact all business for the principal).
    Power of Attorney
  11. The act of accepting and giving legal force to an obligation that previously was not enforceable.
  12. A principal whose identity is unknown by a third person, and the third person has no knowledge that the agent is acting for a principal at the time the agent and the third person form a contract.
    Undisclosed Principal
  13. Legal responsibility placed on one person for the acts of another.
    Vicarious Liability