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Chapter 14: Agency and Employment
Terms in this set (19)
The relationship between employers and employees.
Who is the principal and who is the agent
The principal is who is presented and the agent does the work on behalf of the principal.
Equal Dignity Rule
The agency agreement must also be in writing.
Agency of Ratification
The occurs when a person who is not officially an agent of the principal acts on behalf of the prinicpal to create an agreement with a third party.
The third party knows that they are working for the agent and they are aware of who the principal is.
Partially Disclosed Principal
The third party may know that they are working with an agent, but they are not aware of the prinicipals identity.
If the third party does not know they are working with an agent and believes the agent is the final party they are working with, then the agent is liable for the contract.
"Let the master answer"
Coming and Going Rule
Typically a person's commute to work is not considered part of their job, the exceptions to this rule are of there is an additional connection to a person's commute, like picking coffee for the office, using a company car, etc.
Which duty requires a principle to cover the agent for possible torts
Professor Fearsome is headed to the university to teach his business law class. On his way he is distracted by thinking big thoughts about his business law class and causes a wreck. Will his employer, the university, be liable for this wreck?
No, because of the coming and going doctrine
What is not true of an agency relationship
It is formed only by written agreement of both parties.
If Samantha hires Darren to create an app that will run certain smart aspects of her house, Darren would be ________.
An independent contractor
Alex hires Jordan's roofing company to put a roof on the home Alex is building. When the roof is almost through Jordan accidentally drops a nail gun that fires multiple nails when it hits the ground. Two neighborhood children are hit by the nails and taken to the hospital. Is Alex liable for the children's injuries?
No, because Jordan is an independent contractor
The ________ rule shields employers from the acts or omissions of employees while commuting to work.
Coming and Going
Which duty means that the agent must inform the principal of any information relevant to the agency relationship?
Shelly goes to Fredrico's restaurant to buy their property and make them an offer they can't refuse. She lets them know that she is working for someone else, but will not release the name of the principal. In this case, Shelly is ________ agent.
A partially disclosed
In 2020, Eric wants to gain the attention and favor of a local real estate developer Ronald Spade. Though Eric is not an agent of Spade, he acts as though he is and convinces a local property owner to sell their property to Spade, even though Eric has no authority to make this contract. When Spade is presented with the deal he likes and accepts it, claiming that both he and the property owner are bound by the contract. Can the property owner void the contract?
: No, because agency was created through ratification
Isla hires Brodie to work as an HR associate at her firm, BigCorp, Inc. He is bummed that he has to be in at nine and cannot leave till after five, but he has a great deal of freedom in running his area of HR. Brodie is most likely ________.
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