summary ch7 - When is an employee acting on behalf of an...

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When is an employee acting on behalf of an employer? Principal—employer; responsible party ( principal’s liability for an agent’s actions varies depending on the agent’s status as servant or contractor.) ( The principal is liable to the third party, but the agent is not, regardless of whether the agent has express, implied, or apparent authority. If the agent has no authority, however, then the agent, not the principal, is liable .) Agent—party hired to act on another’s behalf Restatement of Agency —common law view of agent-principal relationship ( An independent contractor is a person who is hired by another to perform a task but is not under the direct control of the hiring party. ) Unincorporated association—nonlegal entity; no legal existence as natural or fictitious person How much authority does an employee hold? Express authority—written or stated authority ( An employee who is hired by agreement (oral or written) is an agent and has been given
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This note was uploaded on 10/28/2011 for the course BUSINESS ACCT 305 taught by Professor Poletti during the Spring '09 term at DeVry Columbus North.

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summary ch7 - When is an employee acting on behalf of an...

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