Test #3 Study Guide

Test #3 Study Guide - Biz Law Test #3 Study Guide Agency...

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Biz Law Wehmeyer 1 Test #3 Study Guide Agency and Agency Principles Flooded house / real estate agent example… you buy a house on the same street as your real estate agent. On the first night in it there is flooding you find out all the houses on the street have this problem. In this case, it was not required to tell about the defects of the house. If you had asked about the specific defect, then you are stuck with the situation. Is there any way you can sue? Does the agent owe you any obligation? There is a conflict of interest The listing agent wants to a house to sell for as much as possible and works for a company The selling agent also works for another company All four of these entities want the house to sell for as much as possible, and on the side of the seller The buyer wants it for as little as possible, so the real estate agent is in a conflict of interest There is such a thing as a buyer’s agent – however, if you are buying really expensive property or if you are buying commercial property, it is really common to have a buyer’s agent and you will have to pay them a flat fee just to go out and look for houses even if you don’t buy the houses and they will get an increase if they find the house – so that’s a conflict of interest again Agency: consists of two players (1) principle and (2) agent Control forms and determines the relationship o Ex: one day Boone is an agent of the law firm and the next of SLU Factors for being an independent contractor deal with: o How much control the principal has over the work o Does the employee work just for this company or for others as well o Who does the supervisor work for o Who owns the tools (if the person needs tools for the job) o What degree of skill is required by the worker If you are an independent contractor, then the agency you are working for doesn’t necessarily have to declare all the taxes they are supposed to because it makes it easier for them to lie and cheat Most agency is based on contract – there’s a consideration and there’s something in exchange for something else o In an employment situation it is an exchange for money Agency does not have to be based on contract – this is gratuitous agency – gift is when one side is giving something and the other side is not giving anything back o Ex: when I tell my friend that I will sell their car for no service fee since he is my friend, then I am the agent and my friend is the principal Attorney means agent: attorney means power of attorney – you are giving someone the power of attorney (agency) to do a service for you or perform some act for you, in since it is an agency relationship, then you are giving the person control to do those things o Power of attorneys may be written poorly – that’s when there are legal issues with it and when the judge uses his reasoning to determine what will happen o This is why one needs the power of attorney to be specific and have it say what you want
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Test #3 Study Guide - Biz Law Test #3 Study Guide Agency...

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