Business Law VII: Agency, Federal Personal Property Laws Flashcards
Special Agent
One authorized to conduct single transaction/series of related transactions on principal’s behalf
General Agent
One authorized to conduct all necessary personal/business transactions for principal
Universal Agent
One authorized to do all acts that can be legally delegated to an agent
Power of Attorney
Formal written creation of agency relationship that lists authority granted
Independent contractor
Someone who acts on behalf of a principal, but principal does not control agent’s day-to-day activities and scope of independent contractor is limited
Express Agency Relationship
One in which principal orally or in writing delegates authority to another
Apparent Agency Relationship
Agent does not have express agreement but still has authority to act as an agent for a principal because of the appearance of having that authority.
Duties of Principal to Agent
- To comply with agency agreement
2. To reimburse reasonable expenses
Duties of Agent to Principal
- Fiduciary - supreme duty of loyalty, cannot make profit at principal’s expense
- Duty of obedience - follow principal’s instructions
- Reasonable care - theoretically liable in negligence to principal for damage caused by carelessness
- Accounting
- No co-mingling
- Disclosure - must inform principal important info
- Loyalty (no competition, no conflict of interest)
Termination of Agency Relationships by act of parties
- Fulfillment
- Lapse of Time
- Specified Event
- Mutual Agreement
- Unilateral act of one party
Agency couple with an interest
Unique agency relationship created in writing that gives the agent some interest vested in the property that is the subject matter of the agency relationship
Termination of Agency Relationship by operation of law
Termination by:
- Death of principal or agent
- Insanity of the principal
- Bankruptcy
- Change of law
- Circumstances such as loss/destruction of subject matter
Disclosed Principal
3rd party is aware that the agent is acting for principal and 3rd party knows who principal is
Disclosed Principal with actual authority
Principal is ONLY liable to 3rd party
Disclosed Principal with apparent authority
Principal is ONLY liable to 3rd party, but agent is also liable to principal for acting without express/implied authority
Agent’s Tort Liability
Agents are liable for the torts they commit
Principal’s Tort Liability through Conduct
- P liable for A’s torts if A was doing as P instructed/ordered
- P liable if P hires A not qualified to perform job assigned
- P liable for torts of A if P failed to supervise properly
- P liable for torts of A if P was negligent in hiring/retention
Vicarious Liability
- Master-Servant relationship
- Scope of employment
- “extra-harzardous activity”
- “nondelegable duty”
Antitrust Law: Sherman Act (1890)
- prohibits “contracts, combinations, conspiracies in restraint of trade”
- prohibits ‘monopolization, attempts to monopolize, conspiracies to monopolize”
Antitrust Law: Clayton Act (1914)
- prohibits price discrimination
- prohibits some tying/exclusive dealing arrangements
- forbids anticompetitive mergers
- prohibits interlocking directorates among large corporations that compete w/ each other
Antitrust Law: Federal Trade Commission Act (1914)
- created by FTC to enforce antitrust laws
2. prohibits “unfair methods of competition”
Antitrust Law: Robinson-Patman Act (1936)
amends Clayton Act to make law against price discrimination more effective
Antitrust Remedies
- Dept. of Justice Antitrust Div. can bring criminal/civil lawsuits against violators
- FTC can enforce Clayton, Robinson-Patman, FTC acts
- Private parties can file civil lawsuits claiming violation of Sherman, Clayton or Robinson-Patman acts and seek 3x damage
Antitrust Exceptions
- Labor union collective bargaining activity generally exempt from antitrust laws
- Public utilities/common carriers generally exempt b/c of separate regulation
