Chapter 14 - Chapter 14 AGENCY AND THE EMPLOYMENT...

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Chapter 14 AGENCY AND THE EMPLOYMENT RELATIONSHIP Agency is created when a person or company ( an agent ) agrees to act for or in place of another person or company (the principal ) Principal: creates authority in an agent Agent: receive authority (attorney in fact) . Third parties make contracts or are involved in torts with the agent Result : The principal is generally bound by the agent’s acts with a third party. could be a good thing or a bad thing ex.) pizza delivery store: agent doing something for me. I am going to be responsible act of agent bound by contracts: liable for torts; possibility Universal agents : anything I can do someone can do for me What Mr. Hine does General power of attorney Wife= agent Wife can do anything: write checks, mortgage property As if the person is dealing with me. Wife does it for free- Gratuitous agent: See a lot of time children name parents= no pay. Corporation: has to have agent Sole proprietor: only so much business can do by self Bring other people in to act on behalf Multiplicity Special agents: only does limited thing for me. Limited power of attorney : ex.) real estate transaction Tom smith can close on 1,2,3 main street Agency coupled with an interest Subagents Open store: new grocery store: hire general manager get ship running: higher shift manager, I’ve given him authority to go delegate. Authority agent
How to create agency relationship By Agreement of the Parties -Oral or write: Durable power of attorney: I john Hine, name Mariah hine to serve as my agent Implied or Express Ratification by the Principal After fact accept actions List car for sale 9k out of town roommate answers. I was going to give 8500. Roommate says sold care -not bound – ratify by accepting salience can ratify action (implied by actions) Agency by Estoppel No agency there. Don’t stop them Knew they were doing it- bound by it Agency by Operation of Law Grocery store cashier goes to Home Depot Oh thanks not going to repay they But get to act on behalf Actual & Apparent Authority Actual : Deal with agent: Expressed or implied Principal sends signals to the agent to do something with a third party. Express Authority : Oral or written instructions create the authority. Implied Authority : Principal’s conduct or trade customs create authority. Apparent : do then think Tom Smith is acting for John Appearance but may not exist Principal sends signals to the third party that what the agent does binds the principal. There is appearance of authority that a third party could reasonably conclude.
Cove Management v. AFLAC, Inc. Agreement with Aflac- do not have authority to bind lease Express authority says you can’t do this. Law suit; Cove management sues From Aflac actions does it see Galvano have authority Cove appeals= lot of stuff Galgano can act on behalf Office set up = symbol & duck Aflac- directory of building: signed lease first then Aflac stuff happens Apparent authority= NONE Court said okay, what happened before lease: Galgano said I can do this which means he is a liar.

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