AGENCY (F)

Question 1

Agent

Answer 1

Individual who acts on a principal’s behalf and at their will

Question 2

Principal

Answer 2

Individual who utilizes an agent to act in his place (decision making authority) at the principal’s behest

Question 3

Apparent Authority

Answer 3

A party will be bound as if it were a principal to an agent who acted with actual authority, when: this party’s words, actions, or failure to act causes a third party to reasonably but mistakenly believe that another acts as It’s authorized agent.

Question 4

Actual Implied Authority

Answer 4

Authority the agent would have as it is reasonably necessary to fulfill the broader responsibilities given by the principal

Question 5

General Agent

Answer 5

Agent who act’s on a principal’s behalf as to all business of a particular kind

Question 6

Specific Agent

Answer 6

Agent who act’s on a principal’s behalf for a specific transaction

Question 7

Gratuitous Agent

Answer 7

Agent who receives no consideration for his role in following the principal’s directives

Question 8

Respondeat Superior

Answer 8

Imposes vicarious liability on the employer for the torts of the individual

Question 9

Disclosed Principal

Answer 9

When another party is aware of the existence and identifty of the principal

Question 10

Undisclosed principal

Answer 10

When another party is not aware of the existence of a principal.

Question 11

Partially disclosed principal

Answer 11

When another party is aware of the existence BUT not the identity of the principal

Question 12

What is the characteristics of an agency relationship?

Answer 12

It is a voluntary, fiduciary relationship between the agent and principal

Question 13

Forms of Contractual Agencies

Answer 13

Employer-Employee

Employer-Independent Contractor

Question 14

Requirements for Agency Relationship

Answer 14

Principal - Manifestation of intent
Agent - Consent
ORAL OR CONDUCT

Question 15

What is required for power of attorney?

Answer 15

A Signed Writing

Question 16

Define Employer-Employee relationship

Answer 16

Employer controls or has right to control how the agent achieves their objectives

Question 17

Define Employer-Independent Contractor relationship

Answer 17

Employer has no control over how the agent performs their objectives

Factors to consider:

1. Is there supervision by employer?
2. Who is supplying tools and workspace
3. Length and exclusivity of employment relationship
4. Paid regularly or by job

Question 18

Agency by Ratification

Answer 18

This relates to the retroactive assent to a contract entered into by an purported agent. The principal must be knowledge of all the material facts regarding the transaction at the time of ratification

Question 19

Duties owed by Agent to Principal

Answer 19

Duty of Care
Duty of Loyalty
Duty to Account for principal’s money or property
Duty to Keep principal’s assets separate
Duty of Candor requiring them to fully disclose to principal any relevant facts related to transaction that the principal would reasonably want to know

Question 20

Duty owed by Principal to Agent

Answer 20

Duty of Compensation

Duty of Reimbursement

Question 21

Agent’s power to bind

Answer 21

An agent binds the principal when he acts within the scope of his authorized powers

Question 22

Actual Express Authority

Answer 22

Principal has directly authorized - in express oral or written communication - to do certain things

Question 23

Acts within scope of employment

Answer 23

Acts that might ordinarily accompany the authorized conduct and that, even if disobedient, serve the purpose of the employer

Factors:

1. The extent to which the conduct is the kind of work the employee was hired to perform
2. The extent to which the conduct occurred substantially within the time and space authorized by the employer
3. The extent to which the conduct was intended to serve the interests of the employer

Question 24

Agent’s Tort Liability to Third-Parties

Answer 24

Agents are liable for intentional tortious conduct (regardless of whether in scope of employment)

Question 25

Agent’s Contractual Liability to Third-Parties

Answer 25

Agent is not personally liable for contracts entered onto behalf of DISCLOSED principal

Agent is personally liable for contracts entered onto behalf of UNDISCLOSED or PARTIALLY principal

Question 26

Principal’s Tort Liability to Third-Parties

Answer 26

NEGLIGENCE - Principal is liable for harm caused by his negligence in selecting, training, retaining, supervising, or otherwise controlling the agent.

VICARIOUS LIABILITY - Under the doctrine of respondant superior, liability attaches where the principal has a right to control the agent and his actions are within the scope of the agency

Not liable for intentional torts of employees UNLESS:
During the course of employee’s work AND
For the purpose of accomplishing work

Not liable for tortious conduct of independent contractor UNLESS:
Activity is inherently dangerous