agency_20160608130855

Question 1

Determining the Existence of an Agency Relationship

Answer 1

An agency relationship is created when:i) A principal manifests assent to an agent;ii) The agent acts on the principal’s behalf;iii) The agent’s actions are subject to the principal’s control; andiv) The agent manifests assent or otherwise consents.

Question 2

Michigan Point of Law: Vicarious Liability and Hospitals

Answer 2

A hospital is not vicariously liable for the negligence of a physician who is an independent contractor and uses the hospital’s facilities to provide treatment to his own patients. However, if the patient looked to the hospital to provide medical treatment and the hospital made a representation that medical treatment would be afforded by physicians working at the hospital, an agency by estoppel may be found. The principal must have done something that would create in the patient’s mind the reasonable belief that the doctors were acting on behalf of the defendant hospital. VanStelle v. Macaskill, 255 Mich. App. 1 (2003).

Question 3

ostensible agency:

Answer 3

An agency is ostensible when the principal intentionally, or by want of ordinary care, causes a third person to believe him to be the principal’s agent when he is not actually employed by the principal. There are three elements necessary to establish the creation of an ostensible agency: (1) the person dealing with the agent must do so with belief in the agent’s authority and this belief must be a reasonable one, (2) the belief must be generated by some act or neglect on the part of the principal sought to be charged, and (3) the person relying on the agent’s authority must not himself be guilty of negligence.