Agency Flashcards
Is a principal-agent relationship established between the owner of a car and a driver when the parties agree that the driver will operate the car pursuant to a condition imposed by the owner?
Yes. When the owner of a car authorizes an individual to drive that car for a specific purpose, the driver acts as an agent for the owner. No compensation or business association between the parties is necessary to create a principal-agent relationship.
Is a creditor liable as a principal for the contracts of a debtor when the creditor takes control of the debtor’s business functions?
Yes. When a creditor exerts control over the operations of a debtor, a principal-agent relationship is created between the parties, and the creditor is liable for the contractual obligations of the debtor.
Cargill consented that Warren would be its agent when Cargill made its operational recommendations to Warren. Warren consented to be Cargill’s agent when it obtained grain for Cargill under the operations financed by Cargill.
Can implied authority be established by evidence showing a course of conduct between two parties which would lead an agent to reasonably believe that a principal intended the agent to have authority under the circumstances?
Yes. When a principal has routinely granted an agent certain powers, implied authority is assumed when the agent exercises those powers.
Implied authority is proven circumstantially when it is shown that the principal intended the agent to have such authority as was necessary to perform the duties the principal assigned. The Church had previously allowed Bill Hogan to hire Sam Hogan to assist in painting projects.
Does a person’s acceptance of the benefits of an agreement to which she was not a party constitute ratification of that agreement?
No. The mere receiving of benefits, without more, does not prove ratification of an agreement. A person’s acceptance of benefits can be illustrative of ratification if an intent to ratify and knowledge of material circumstances are also proven
Is a proprietor liable to a customer for money lost to an unauthorized person who convincingly pretends to be the proprietor’s agent?
Yes. A proprietor has a duty to exercise reasonable care to prevent customers from being defrauded by unauthorized persons. When a proprietor allows a non-agent to swindle a customer under circumstances in which an average person would believe that the non-agent was acting on the proprietor’s behalf, the proprietor is estopped from denying liability for the non-agent’s actions.
Is an oil company liable for the negligence of an employee of a gas station manager with whom the oil company contracts to sell their products, when the oil company has power over the gas station’s daily business?
Yes. A master is responsible for the torts of a servant. A master-servant relationship arises from a contract, such as the subject Agreement, providing that one party has authority over the day-to-day operations of another party’s business.
(in this case, set schedule, furnished advertisement, agreement terminable at master’s discretion & most importantly agreement requires servant to perform whatever duties required of him by master)
Is a franchisor liable for the negligence of a franchisee’s employee if their contract vests the franchisor with authority to dictate the franchisee’s business operations, even if the contract also states that the parties are independent contractors?
Yes. A franchise arrangement typically provides for the franchisor’s distribution of goods or services to an independent franchisee, who assumes the risk of profit or loss. Hence, a franchise contract usually provides for business conducted by independent contractors. But, a principal-agent relationship will arise if a franchise contract vests the franchisor with authority to dictate the franchisee’s business operations, even if the contract states that the parties are independent contractors.
Is a franchisor liable for the negligence of a franchisee that is subject to an agreement requiring it to operate in a manner that closely associates it with the franchisor?
Yes. When a franchise agreement requires a franchisee to operate an establishment so as to closely identify it with the franchisor, the franchisor holds out the franchisee as an agent. Hence, the franchisee of such a uniform franchise is an apparent agent of the franchisor, and the franchisor is liable for the torts of the franchisee.
if it walks like a mcDs and talks like a McDs and you go there because you want McDs then its probably a McDs
Is an employer liable for an employee’s damage when it was foreseeable that the damage could have been caused in the scope of employment, even if the employee was not performing a duty for the employer?
Yes. An employer cannot disclaim responsibility for the acts of employees that are foreseeable as part of the operation of the employer’s business. Liability attaches to an employer even if the act at issue was not done in service to the employer.
4 factors for determining whether employee is acting w/in scope of employment
- time/place/purpose of employee’s act
- was the act authorized and commonly performed by employees
- did the act depart from normal practice
- would the employer reasonably expect that the act would be performed
Is an employer liable for battery by an employee who was retaliating for constant heckling?
Yes. When an employee commits battery on a person whose conduct interferes with the employee’s ability to successfully perform his or her duties, the employer is liable for injuries to that person.
Is a landowner liable for the negligence of an independent contractor hired to do work that creates a severe risk of harm to others, even if the landowner has no control over the independent contractor’s work?
Yes. When a landowner contracts with an independent contractor to perform work that is inherently dangerous unless the contractor takes specific precautions, and the contractor fails to take those precautions, the landowner is liable for harm the contractor causes. This is an exception to the general rule that a contractee is not liable for the torts of an independent contractor.
Does an agent have a fiduciary duty to fully disclose all matters pertinent to a principal’s business?
Yes. As a manager of the Tulsa division of JVIC, Rash was in charge of all operations and was tasked with devoting all his full time work efforts to the company. Rash was therefore an agent of JVIC who owed JVIC a fiduciary duty. An agent’s basic fiduciary duties include a duty to account for profits, a duty not to compete with the principal, and a duty of full disclosure on matters pertinent to the principal’s business.
Has an employee who operates a business that competes with his or her employer without disclosing that business to the employer committed a breach of fiduciary duty?
Yes. An agent has a fiduciary duty to act in good faith and to further the interests of the principal. If an agent competes with the principal’s business, the agent has violated his or her fiduciary duty and is liable to the principal for profits made in the competitive enterprise.
May persons who were employed by a company solicit that company’s customers for a competing business after they have terminated their employment?
No. A customer base that is procured though the business’s hard work and advertising is part of a business’s good will, and may not be solicited by former employees. Such appropriation of a former employer’s customers for a competing enterprise, as Newbery et al. did, constitutes unfair competition.
