Exam 2 CHP 32,33,36 Flashcards
Refers to a person having a duty created by his or her undertaking to act primarily for another’s benefit in matters connected with the undertaking. Trust and confidence
Fiduciary
A person who contracts with another to do something for him but who is not controlled by the other nor subject to the other’s right to control with respect to his physical conduct in the performance of the undertaking.
Independent Contractor
Any copyrighted work created by an employee within the scope of her or his employment at the request of the employer.
Work-for-hire
True or false.
When an employer hires an independent contractor, any copyright created normally belongs to the employer.
False
An agency which is based on an express or implied agreement that the agent will act for the principal and the principal agrees to have the agent so act.
Agency by Agreement
An agency where a person who is in fact not an agent makes a contract on behalf of another. If the principal approves or affirms that contract by word or by action then the agency is….
Agency by Ratification
An agency where a principal causes a third person to believe that another person is the principal’s agent, and the third person acts to his or her detriment in reasonable reliance on that belief.
Agency by Estoppel
An agency relationship based on social or legal duty - such as the need to support family members or emergency situations when the agent is unable to reach the principal.
Agency by Operation of Law
What are the 5 duties of the agent?
- Performance
- Notification
- Loyalty
- Obedience
- Accounting
What are the 4 duties of the principal?
- Compensation
- Reimbursement and Indemnification
- Cooperation
- Safe Working Conditions
The agents duty to act solely for the benefit of his or her principle. Involves confidentiality.
Loyalty
The agent has a duty to follow all lawful and clearly stated instructions of the principal. May change during emergency situations.
Obedience
The agent must keep and make available to the principal of all property and funds received and paid out on the principals behalf.
Accounting
Whenever an agent disburses funds at the request of the principal or when the agent incurs liabilities because of authorized and lawful acts and transactions.
Reimbursement and Indemnification
A principal has a duty to assist the agent in performing his or her duties.
Cooperation
What are the agent’s 3 rights and remedies against the principal?
- Tort and Contract Remedies
- Demand for an Accounting
- No Right to Specific Performance
What are the principal’s 3 rights and remedies against the agent?
- Constructive Trust
- Avoidance
- Indemnification
When there is no contractual relationship between agent and principal, the agent isn’t forced to continue agency.
No Right to Specific Performance
Anything that an agent obtains by virtue of the employment or agency relationship belongs to the principal. The agent must hold it in a separate accounting or holding for the principal to pickup.
Constructive Trust
An authority declared in clear, direct, and definite terms. Orally or writing.
Express Authority
When the contract being executed is or must be in writing, then the agent’s authority must also be in writing.
Equal Dignity Rule
When an agent is conferred powerful express authority through written document and is notarized. May be special or general.
Power of Attorney
An agent has the ______ authority to do what is reasonably necessary to carry out express authority and accomplish the objectives of the agency.
Implied Authority
An agent has ____ authority when the principal, by either word or action, causes a third party to reasonably believe that the agent has authority to act, even though the agent doesn’t have express authority.
Apparent Authority
