EXAM 4 Flashcards
When Principal acts on their own behalf, who is liable?
The Principal is ALWAYS liable
Agency Agreement is where:
The employee gets authority from their employer
Who does a 3rd Party Contract happen between
Principal and 3rd Party
3 Types of Authority
Express, Implied, Apparent
Express Authority
Oral or Written Authority
When does Express Authority happen
For specific events or for a long time
Implied Authority
Implied from express authority or actions from Principal
When is an agent NOT bound to the contract?
When they are acting within their actual authority
2 Requirements for Apparent Authority:
Principal and Agent known relationship, 3rd Party reasonably believes Agent has actual authority
When looking objectively at apparent authority, we must look at the situation from the perspective of the __________
3rd Party
Agent can be liable to Principal for
Breach of Duty of Obedience
Apparent Authority can exist when:
Fired/Quit, 3rd Party unaware, Agency Agreement not terminated due to death, Agent exceeds actual authority
How apparent authority is cut off:
Death/Incapacity of Principal, Principal must notify in order to cut off
Actual Authority is terminated earlier for death/incapacity if:
Agent is given notice of death/incapacity or reasonable time has passed since last communication
2 Types of Notice
Actual, Constructive
Actual Notice is required when:
3rd Party has dealt with Agent before to contract w Principal
Actual Notice can be _______________ but it must be _______________
Oral or written; CLEAR
Constructive Notice Example
Newspaper, Journal Ad
Constructive Notice required for:
Current customers (didn’t deal w Agent), Non-customers
Ratification occurs when
Agent enters into a contract on Principal’s behalf w neither actual nor apparent authority
Ratification can be
Express (oral/written) or Implied (accept benefits of contract)
If ratified, when is the Principal liable?
BEGINNING OF THE CONTRACT
Requirements for ratification
ENTIRE contract must be ratified before the 3rd party withdraws
Can ratifications be revoked?
NO
3 Types of Principals
Disclosed, Partially Disclosed, Undisclosed
Actual Authority, Disclosed
P – TP: bound
Actual Authority, Partially Disclosed
P – TP: bound
A – TP: bound
P – A: reimbursement
Actual Authority, Undisclosed
P – TP: bound
A – TP: bound
P – A: reimbursement
Apparent Authority, Disclosed
P – TP: bound
P – A: indemnity
Apparent Authority, Partially Disclosed
P – TP: bound
A – TP: bound
P – A: indemnity
Apparent Authority, Undisclosed
NONE
No Actual or Apparent Authority, Disclosed
A – TP: liable
No Actual or Apparent Authority, Partially Disclosed
A – TP: bound
No Actual or Apparent Authority, Undisclosed
A – TP: bound
2 Types of Torts involving P and A:
P authorizes A’s tort, P does NOT authorize A’s tort
If P authorizes A’s tort, who is liable?
P if A is an AGENT, A can also be held liable but has the right to indemnification
Authorized torts can be:
Intentional, Strict Liability, Negligence
If P does not authorize A’s tort, they can still be held liable under
Respondeat Superior if A is acting within the scope of their employment
Respondeat Superior in Latin means
The master must answer
Scope of employment:
Work assigned or things done while on the clock
If employee was not within the scope of employment, they are said to be
On a frolic
P can also be held liable if:
Authorized tort, Their negligence was the cause of the tort, Strict Liability situations
For employer to assert defense for sexual harassment
No tangible adverse employment action was taken against harassed employee, employer had no knowledge, employer took immediate action to rectify
Is actual knowledge of harassment required?
NO
Immediate action could entail:
Separating employees, Halt to conduct, Firing harasser, Security for harassed employee
Hostile Work Environment
Reasonably interferes with an individual’s work performance OR creating “an intimidating, hostile or offensive” working environment
Notes to Hostile Work Environment
Does not have to be sexual, doesn’t have to be pointed at employee, needs to be consistent
Requirements of Hostile Work Environment
P was employee, advance was unwanted, harasser was employee/IC/vendor, employer knew or should’ve known of conduct
Employer’s Defense for Sexual Harassment
Disprove a requirement, Assert and prove defense
Requirements to be eligible to assert the Defense (harassment)
No tangible adverse employment action, Employer tried to stop, Employee didn’t do anything (UNREASONABLY) to help themselves
Age Discrimination in Employment Act of 1967
No discrimination in age for employment decisions