Business Organizations

Question 1

What is the definition agency?

Answer 1

Agency is the fiduciary relationship that arises when one person (principal) manifests assent to another person (agent) that the agent shall act on the principal’s behalf, subject to the principals control and agent manifests assent or otherwise consents to act.

Question 2

What is the recipe for agency?

Answer 2

• Mutual Assent
• Act on Person’s Behalf
• Subject to principal’s control.

Question 3

If you miss any of these do you have agency?

Answer 3

NO!

Question 4

True or False: Manifestation of Mutual Assent is a “1-Way Street”

Answer 4

False, it’s a two way street that can be expressed or implied

Question 5

In your own words, tell me about the significance of Yost v. Wabash College?

Answer 5

Vicarious liability is the biggest think that came from this. It’s not that they are the wrongdoer but how they are associated to the wrongdoer.

Benefit to the principal is not the same as acting on behalf of principal

Question 6

What did the majority say in the Bonds case?

Answer 6

an independent contractor is NOT an agent

Question 7

What did the majority say in the Bonds case?

Answer 7

an independent contractor CAN be an agent if the ABC’s are met.

Question 8

What does control look like?

Answer 8

• work normally done?
• skill required?
• length of employment?
• Subjective intention
• etc.

Question 9

What duties are owed by the agent to the principal?

Answer 9

• General fiduciary duties (act in the others best interest)
• duty of loyalty (FOOD LION)
• duties owed by performance

Question 10

What are the duties owed by the principal to the agent?

Answer 10

• Duty created by the contract
• Duty to indemnify (I’ve got your back)
• Duty to deal fairly and in good faith