Discussion Week 1

Discussion Week 1 - the principal. (Mallor, 2010) In this...

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I can see several duties that Rita violated in this scenario. Rita is an agent for the  principal. The law would describe this as a “fiduciary” relationship which, by definition  means: a person to whom property or power is  entrusted  for the benefit of another.  As  a fiduciary, the agent must use the entrusted power and property in the best interest of  the Principal. By contacting clients for her own benefit, Rota did not do this. (Mallor,  2010)        In addition, it appears that Rita violated the Agency law’s “Duty of Loyalty” and also  engaged in a conflict of interest.  With duty of loyalty, an agent must avoid conflicts of  interest with the principal as well as not disclose confidential information received from 
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Unformatted text preview: the principal. (Mallor, 2010) In this case, the information was the client list. Furthermore, the conflict of interest rule clearly states that, unless the principal agrees otherwise (and in this case, they didnt) an agent may not compete with the principal regarding the agency business so long as he remains an agent. Finally, an agent ordinarily may not solicit customers for a planned competing business while still employed by the principal. (Mallor, 2010) Rita has appeared to have violated her entire contract. Reference Mallor, J. P., Barnes, A.J., Bowers, T., & Langvardt, A.W. (2010). Business law: The ethical, global, and e-commerce environment . New York, NY: McGraw-Hill/Irwin....
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This note was uploaded on 10/11/2011 for the course MG 261 taught by Professor Lynch during the Fall '11 term at Park.

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