Agency

Question 1

Agent

Answer 1

A person who may legally act on behalf of a business (i.e. making decisions as that entity)

Question 2

Party for whom the agent acts

Answer 2

principal

Question 3

Employee as relates to agency

Answer 3

Usually an agent

Question 4

IC as relates to agency

Answer 4

Usually not an agent

Question 5

Means of creating agency

Answer 5

Express agreement, by conduct, ratification, estoppel, contract for necessaries by minor

Question 6

Agency estoppel

Answer 6

Occurs when an appearance of binding authority is relied upon

Question 7

Contract for necessaries agency

Answer 7

Child acts as parent’s agent when signing contract for necessaries

Question 8

1st duty of agent

Answer 8

Fiduciary of principal - should act in best interest

Question 9

2nd duty of agent

Answer 9

Follow instructions of principal

Question 10

3rd duty of agent

Answer 10

Act with skill expected

Question 11

4th duty of agent

Answer 11

Duty of loyalty

Question 12

5th duty of agent

Answer 12

Protect confidential information

Question 13

6th duty of agent

Answer 13

Notify principal of events

Question 14

1st duty of principal

Answer 14

Accept/honor contracts with agent

Question 15

2nd duty of principal

Answer 15

Respondeat superior

Question 16

3rd duty of principal

Answer 16

Liable for crimes if having knowledge (i.e. scienter)