AEM 320 Week 14 - AEM 320-Business Law Lecture Date Monday...

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

AEM 320-Business Law Week 14-Nov.26-Nov. 30 Lecture Date : Monday, November 26 th 2007 I. Agency – the authority to bind another contractually. A. Examples of Agency Relationships 1. Employer/Employee-master/servant- the employer is liable for the torts and workers compensation of the employee agent. a. Partners -are agents of the partnership and each other, but are not employees. Each partner is liable for the actions of the other partners. b. Corporate Officers -who are employees of the company and act on its behalf, may be its agents. This will depend on the officer’s position in the company. 2. Independent Contractors- are authorized to perform services for the principal. In general, the principal will not be liable for the actions of independent contractor, but will be in some situations. a. See Jaeger v. Western Rivers Fly Fisher, text at 335. Principal is an outfitter of fishing and adventure trips in the west. Wrongful acts committed by fishing guide. Man who hires Western River for a fishing experience brings suit after being injured as a result of the guide’s actions. Can the injured plaintiff sue someone other than the guide who was the driver of the vehicle? If the fishing guide was hired as an employee, Western River may be held liable, but if guide is considered an independent contractor then Western River is not liable. Court reverses summary judgment and remands case to lower court for a jury decision. b. See Pusey v. Bator – Owner of property is concerned about security issues, so he hires a security company. The security company has guards who patrol the property. The agreement didn’t state whether the guards should be armed, but the owner of the property knew that at least some of the guards carried arms. One of the guards who is armed but is not authorized by the security company to be armed shoots a person on the property (who turns out not to be an intruder after all). Family of the victim sues the owner of the property. Owner of the property claims that there is no liability because the guard was an independent contractor, not an employee. But the court finds that the property owner is liable because of an important exception to the general rule: when you hire a contractor to carry out inherently dangerous activities, you cannot delegate the responsibility to keep your premises safe for third parties. B. Employees v. Independent Contractors 1. Issues to consider: a. The degree of direction and control exercised over the individual by the principal, and also the financial relationship.
Image of page 1

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

AEM 320-Business Law Week 14-Nov.26-Nov. 30 The more control, the more likely the agent is an employee and not an independent contractor. b. Behavioral Control – does the principal have control over what is done, but also how is it done?
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern