Chapter 11: Agency Law

Question 1

Agency Law (422)

Answer 1

Law establishing the relationship & circumscribing the behaviors between the principal & the agent.

Question 2

Principal (422)

Answer 2

Directs the agent to act for the principal

Question 3

Agent (422)

Answer 3

Merely the “arm” of the principal, acting in whatever manner the principal tells him to, within legal/ethical constraints

Question 4

Fiduciary (426)

Answer 4

Critical to agency law: these are duties of trust and confidence due by one party to another

Question 5

ALl agents owe thier principals…. (426)

Answer 5

a fiduciary duty

Question 6

Actual Authority (427)

Answer 6

does indeed exists

Question 7

Express (427)

Answer 7

Express agreemnt with specific instructions in words, orally or in writing, between the principal and agent to engage in the principle-agent relationship

Question 8

Implied (427)

Answer 8

Implied by the circumstances, behaviors of parties; there is no express creation of the relationship

Question 9

Apparent Authority (432) Agency by estoppel

Answer 9

a principal leads third person to believe another person is his agent when he is not

Question 10

Reasonable Investigation (432)

Answer 10

a 3rd party, believes the agent has authority to act, but the agent either does not have any authority at all or authority for the unauthorized act

Question 11

Duties of Principals (435)

Answer 11

Compensation, reimbursement, Indemnification, cooperation, safe work place, loyalty, obedience, performance, accounting, notification

Question 12

Duty of Compensation (435)

Answer 12

Principal must pay the agreed upon amount to the agent either at completion of duties or by agreement specification

Question 13

Duty of Reimbursement (435)

Answer 13

Principal reimburses the agents expenses incurred on his behalf that are authorized by the principal, within the scope of the agency & necessary to discharge the agents duties

Question 14

Duty of indemnification (436)

Answer 14

Principal indemnifies the agent against damages incurred by agent while acting on the principals behalf

Question 15

Duty of Cooperation (436)

Answer 15

principal is to assist in the agent in the agents completion of his duties

Question 16

Fiduciary duty present in (437)

Answer 16

EVERYTHING: on of trust & confidence that the agent will act in the best interest of the principle

Question 17

Duty of loyalty (438)

Answer 17

Agent must act in the interests of the principal first

Question 18

Duty of obedience (438)

Answer 18

Agent should do as he is instructed, unless it is immoral or illegal

Question 19

Actual notice (440)

Answer 19

agent really did tell the principal what he needed to know

Question 20

Respondent superior (444)

Answer 20

Agency relationship with vicarious liability through the doctrine of respondeat superior “let the master answer” for the torts/behavior of his “servants”