Chapter 32 Flashcards
What is an agency?
Fiduciary relation created by consent, act on behalf of another, subject to control.
Employer-employee relationships: employees are usually _____.
Agents
How do employer-independent contractor relationships work?
Not employees, none or less control. May/may not be agent, depends on amount of control.
Independent contractors pay ____ taxes.
All
What is indemnification?
Dictates who takes responsibility for problems in contracts.
What things do courts consider when differentiating between employees and independent contractors?
Control, distinct, direction, tools, time, payment, skill.
Agency relationships affect the employer’s _______ for the worker’s actions.
Liability
What is an agency relationship?
Consensual, requires no consideration, require principal to have capacity, can be for any legal purpose.
What is agency by agreement?
Express consent or implied by conduct.
What is agency by ratification?
Principal either by act or by agreement, ratifies conduct of a person who is not an agent at time of agreement.
What is the created by by principals conduct (agency by estoppel)?
Statements or acts of the principal. No agency exists at the time of agreement.
What is agency by operation of law (agency by estoppel)?
Social policy or legal duty, OR formed in situations when agent is unable to contact principal. Purchases of necessaries among family members or emergencies.
What are agents duty to the principal?
Notification, obedience, performance, accounting, loyalty.
