shortoutline

shortoutline - Business Associations Agency Law The...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Business Associations Agency Law The relationship ~ can be verbal or formalized, cannot be waived Agency Loss: whenever profits are lost due to creation of an agency ~ reduce with monitoring, etc Agency costs: Agency losses + costs Elements of Agency o principle has to manifest consent that the agent act on behalf of the principle o under the principle’s control o agent has to accept the offer Consequences of Agency o Agent can bind the principle in contract o torts of the agent are imputed to the principle o information known by the agent is imputed to the principle o Fiduciary duties! Agents owe: RS 2d of Agency loyalty, care, candor, furnish services, disclosure, obey, act within scope Principles performance of contractual obligations, good conduct, noninterference, cooperation, indemnification in certain circumstances o external consequences o internal consequences: bind in contract, always has a third party involved Cases o applied 3 part agency test ~ not an agent never ceded control just doing paperwork o Food Lion v. Capital Cities/ABC, Inc (about fiduciary duties) breach of duty of loyalty and trespass however: don’t commit tort with two jobs ~ trouble here is harming 2 nd for 1sts benefit Authority Actual o manifestation by the principle that agent’s reasonable interpretation of that manifestation leads the agent to act o express actual: actual grant to act on that in the principal’s behalf Apparent o Two cases where agent has apparent authority and exceeds it agent never had authority (or was not an agent) o looks as if there was a manifestation of consent by the principle to the agent to act on the principle’s behalf and there was no limitation key = reasonable belief!! o Who gets the burden? the principle part is the one who is most able to prevent the harm from occurring it helps 3 rd parties trust agencies Implied o only present where there is actual authority o implied authority to do what is necessary to do the actual authority Cases o Castillo v. Case Farms: implied authority doesn’t matter if there was no written records, looks like they were working for you
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
authority under implied authority to recruit, hire, and bring workers norms include transportation and housing and paycheck o Bethany Pharmaceuticals v. QVC (authority to bind) rewarded the pains QVC went through to show there was no authority reasonable to contact QVC given the letter, NOT to make a huge order Liability ~ Respondeat Superior (tort liability) ~ vicarious liability Elements o physical injury to person or property o is the tortfeasor an employee o did the tortious conduct occur within the scope of the employment Types of applicable Torts o physical injuries to persons or property if the agent is an employee then respondeat superior applies if the agent is a non employee then respondeat superior does not apply
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 13

shortoutline - Business Associations Agency Law The...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online