Chapter31 - AGENCY RELATIONSHIPS Agency is[T]he fiduciary...

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AGENCY RELATIONSHIPS Agency is: [T]he fiduciary relation which results from the manifestation of consent by one person to another that the other shall act in his behalf and subject to his control , and consent by the other so to act. Employer – Employee Relationships Normally, all employees who deal with third parties are deemed to be agents. All employment laws (state and federal) apply only to the employer-employee relationship. Statutes governing Social Security, withholding taxes, workers' compensation, unemployment compensation, workplace safety, employment discrimination, and other aspects of employment are applicable only when an employer-employee relationship exists. These laws do not apply to an independent contractor. Because employees may be deemed agents of their employers, agency law and employment law overlap considerably. Agency relationships, though, as will become apparent, can exist outside an employer-employee relationship and thus have a broader reach than employment laws do.
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Employer – Independent Contractor Relationships Independent contractors are not employees because, by definition, those who hire them have no control over the details of their work performance. [An independent contractor is] a person who contracts with another to do something for him but who is not controlled by the other nor subject to the other's right to control with respect to his physical conduct in the performance of the undertaking. He may or may not be an agent. Building contractors and subcontractors are independent contractors, and a property owner does not control the acts of either of these professionals. Truck drivers who own their equipment and hire out on a per-job basis are independent contractors, but truck drivers who drive company trucks on a regular basis are usually employees. The relationship between a principal and an independent
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Chapter31 - AGENCY RELATIONSHIPS Agency is[T]he fiduciary...

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