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Agency Relationships in Businesses

Principal is liable for intentional torts committed

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Liability for Agent’s Intentional Torts. Principal is liable for intentional torts committed  within the scope of employment. Employer is also liable for employee’s acts which employer knew or should have  known the employee had a propensity to commit.  General Rule:  Employer is not liable for acts of independent contractors because  employer has no right to control.  Must determine whether worker is employee or independent contractor. Exceptions :  Strict liability for unusually hazardous activities, transportation of  highly volatile chemicals, or use of poisonous gases.  Liability for Agent’s Crimes.  Agent is liable for her own crimes.  Principal is not liable, even if the crime was committed within the scope of  employment,  unless : Principal participated in the crime. In some states, principals may be liable for agent violation of regulations. How are Agency Relationships Terminated?
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Agency can be terminated by: An Act of the Parties Mutual Agreement  If an agency relationship is terminated, voluntary or not, you have a duty to inform  all third parties that may be effected Ex. NOTICE TERMINATION: David fails to contacts CBS or anyone else, it is  very likely that the agent could create contract that the 3 rd  parties would think  were legally binding.  They still believe you to be David’s agent and the court will  hold David liable.  By Operation of Law Once agency terminated  Agent has no actual authority to bind the Principal, but  may have apparent authority to bind Principal Termination by Act of the Parties Lapse of Time Purpose Achieved Occurrence of a Specific Event Mutual Agreement Termination by One Party Notice of Termination  Termination by Operation of Law Death or Insanity of either Principal or Agent; automatic Impossibility (subject matter lost or destroyed Changed Circumstances Bankruptcy War
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