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Unformatted text preview: case (Cheeseman, 2010, p. 331). The Agency portion of commercial law states that an agent (Albert) can act on behalf of the principal (Paulette), when there is a contractual obligation between principal and agent (Paulette hired Albert and was allowed to collect rent payments). Any agent, acting on behalf of a principal, owes a fiduciary duty to be loyal to the principal. An agent cannot usurp an opportunity from the principal, as in the case of Albert. Paulette definitely has the upper hand, if she wishes to sue Albert. An employee is an agent of the organization for which he or she is employed at and can be terminated if the employees actions violate the organizations code of ethics or is found to act fraudulently. Reference: Cheeseman, H. (2010). The Legal Environment of Business and Online Commerce: Business Ethics, E-Commerce, Regulatory and International Issues . Retrieved from www.ecampus.phoenix.edu on January 21, 2010...
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This note was uploaded on 08/21/2010 for the course ACCT MKTG321 taught by Professor Ms.kris during the Spring '10 term at DeVry Long Beach.
- Spring '10