Week 14 - AEM 3200 Week 14 Agent Relationship Contract...

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

View Full Document Right Arrow Icon
I. Agency – the ability to bind another contractually a. Examples of Agency Relationships i. Employer/Employee – master/servant – the employer is liable for the torts and workers compensation of the employee agent. 1. Partners – are agents of the partnership and eachother, but are not employees. Each partner is liable for the actions of the other partners. 2. 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. ii. Independent contractors – are authorized to perform services for the principal. In general, the principal will not be liable for actions of independent contractor, but will in some situations b. employees v. Independent Contractors i. Issues to consider: 1. The degree of direction and control exercised over the individual by the principal, and also the financial relationship. The more control, the more likely the agent is an employee and not an independent contractor. 2. Behavioral Control – does the principal have control over what is done, but also how it is done? a. Does the principal provide instructions and training? 3. the degree of skill and/or education required to perform the task is also considered 4. financial control – does the agent have a personal financial interest in the arrangement? a. Significant investment b. Realization of profit or loss – can the agent realize a profit or loss from the job independent of the financial result of the principal? If this is true, the agent is more likely to be an independent contractor. c. see Clackamas Gastroenterology Assoc. v. Wells – should federal antidiscrimination legislation apply to a medical pratice? Practice had ten employees with five or six doctor-shareholders. For this legislation to apply, a company must have 15 employees. If doctor- shareholders could be counted as employees, then the legislation would apply. Court looks at degree to which the doctors are subject to firm’s control regarding their employment activities. Eventually the court remanded the case to a lower court for a decision on how independent the owners were based upon their new clarifications. d. See Walker v. Lahoski, Case 33-3 – same sort of issues here, except here is the issue if Walker is an employee and if he is entitled to workers comp. and if not an employee then he will receive no benefits. II. Issues to consider in an agency relationship: a. Is the person actually an agent?
Background image of page 1

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

View Full Document Right Arrow Icon
b. Does the agent have the authority to undertake this particular action on the principal’s behalf? c.
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.

{[ snackBarMessage ]}

Page1 / 7

Week 14 - AEM 3200 Week 14 Agent Relationship Contract...

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