Agency

Question 1

When is a principal liable for his agent’s torts?

Answer 1

1) There has to be a principal-agent relationship

2) Tort was committed within the scope of the relationship

Question 2

Requirements for a principal-agent relationship

Answer 2

1) Assent
2) Benefit of the principal
3) Control- principal must exercise control over the agent

Question 3

Sub-agent liability

Answer 3

Only if ABC all met, usually assent will be missing

Question 4

Borrowed agent

Answer 4

Only if ABC are met, usually will be missing control

Question 5

Two situations where there is vicarious liability for independent contractor torts

Answer 5

1) Inherently dangerous activities (non-delegable duties)

2) Estoppel- If you hold out your independent contractor as an agency relationship

Question 6

Frolic v. Detour

Answer 6

Frolic- New and independent journey

Detour- slight departure from assigned task

Question 7

Factors in determining whether it was within scope of employment?

Answer 7

1) Was it within the job desription?
2) Did it occur on the job? (Frolic/detour)
3) Did the agent intend to benefit the principal?

Question 8

Vicarious liability for intentional torts (rule and exception)

Answer 8

Generally no liability, unless conduct was :

1) Authorized by principal
2) Natural form the nature of employment
3) Motivated by desire to serve principal

Question 9

Four types of authority for k’s

Answer 9

Actual express, actual implied, apparent, and ratification

Question 10

Express authority is revoked by

Answer 10

1) Unilateral act of either the principal or the agent

2) Death of principal

Question 11

Effect of incapacity of the principal on an agency relationship

Answer 11

Express authority will survive if there is a POA, but to survive death, the POA must say that it survives death

Question 12

Actual implied authority can arise from

Answer 12

1) Necessity- authority to do all tasks necessary to accomplish expressly authorized task
2) Custom- Implied authority to do all tasks customarily done by people in their position
3) Prior dealings between principal and agent

Question 13

Requirements for apparent authority

Answer 13

1) Principal cloaked agent with appearance of authority

2) Third party reasonably relies on appearance of authority

Question 14

Ratification requirements

Answer 14

1) Principal has knowledge of material facts regarding the contract
2) Principal accepts its benefits
3) Ratification cannot alter the terms of the contract

Question 15

Who is liable on a contract that an agent signed for principal?

Answer 15

Principal (not agent) unless the principal was partially disclosed or undisclosed, in which case agent can be sued too

Question 16

Duties agent owes to principal

Answer 16

1) Duty of care
2) Duty to obey instructions that are reasonable
3) Duty of loyalty