Study Guide Exam 1 - Chapter 22 The Law of Representation...

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Chapter 22 The Law of Representation and Work: Agency and Employment 1. Mathew 6:24 – provides the classic statement about conflicts of interest and is frequently quoted by individuals who are unaware of the source. Note that there is a message about everyday life and a spiritual message. This is frequently the case in the Bible. Since the message about every day life is true, we can have confidence that the spiritual message is true. a. You cannot serve both God and Money b. No one can serve two masters, either he will hate the one and love the other, or he will be devoted to the one and despise the other. 2. Luke 7:1-10 – the centurion demonstrates great faith in Jesus as a spiritual principle with spiritual employees/agents to do his (Jesus) commands. a. The centurion understands that Jesus’ power is greater and he has a power over all people not just his employees or agents. Jesus says that he has not found that faith even in Israel. 3. Exodus 20:18-23 – illustrates a dual agency with consent. a. Moses communicates to the Israelites and tells them what God says. 4. Nehemiah 11:23-25 – Pethahiah is described as the king’s agent in all affairs relating to the people. 5. One does not have to do flashy things to be God’s agent in the world. 6. II Corinthians 4:7 – provides a colorful statement about how an agent’s authority to act comes from the principal. a. Jars of Clay, God molds us for Him to work through us. Fiduciary Relationships 1. A fiduciary relationship is one based upon trust and confidence and an individual is a fiduciary when so acting on behalf of another. This is at the heart of agency relationships and requires utmost honesty and loyalty. The highest ethical standard is the legal standard in measuring the fiduciary’s requirements. Fiduciary relationships also exist between an attorney and client, between partners, and directors and their corporation to list several examples. Basic Work Relationships 1. Agency is a relationship in which on person (the principal) consents to have another (the agent) act on his/her behalf. 2. Independent Contractor is one who contracts with another to perform a task but whose working methods are not controlled or subject to being controlled by another. 3. Employee is one whose work details are controlled by the employer. 4. When is an employee an agent? An employee whose duties require him/her to deal with third parties is an agent of the employer in the context of those duties. An employee may also become and agent by operation of law in, for example, an emergency situation when the employee is unable to obtain instruction from his/her employer and acts reasonably. 5. It is to be decided on the special facts exhibited by the evidence and if this shows express authority in a servant or authority in an emergency arising out of the necessities of the case or a ratification of the act of a servant done without authority the defendant’s liability is established.” 6. What rules are used by courts to determine if a worker is an employee or independent contractor? The most important rule is
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This note was uploaded on 04/15/2008 for the course BLAW 460 taught by Professor Reid during the Spring '08 term at Abilene Christian University.

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Study Guide Exam 1 - Chapter 22 The Law of Representation...

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