17,18-JUN-2009

17,18-JUN-2009 - Agency Law 17, 18-JUN-2009 One person acts...

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Agency Law 17, 18-JUN-2009 One person acts on behalf another person. Principal-agent: o Principal: has right of control. o Agent: acts on behalf of a principal. o Fiduciary: the agent owes the principal the highest duty of loyalty. Master-servant vs. employer-employee: Employer-Independent contractor: o The principal does not have control over the agent. o Not an agency relationship. o The employer does not control when the person works, what he does, etc. Factors that determine control (more than 5 categories): o Length of service: has to be on an ongoing basis. Not just a onetime thing. o Type of payment: Hourly payment: more control because the person has to be there at specific time Salary: Lump sum: less control. o Skilled or unskilled: in unskilled labor principal has more control. o Within the business of the employer: if you hire someone the put a roof it is the influence of the employer. o Belief of parties: New trend is to outsource to get rid of the agency If you have employees you have to pay insurance, taxes, etc. this cut benefits. Microsoft did this and it was illegal. Even though they were independent contractors they were treated like employees. Who can be an agent? o The principal’s capacity is important – not the agent. An agent can be under 18 who are acting for a principal. Anyone can be an agent because they work for someone else. Authority:
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17,18-JUN-2009 - Agency Law 17, 18-JUN-2009 One person acts...

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