Liability for agents crimes agent is liable for her

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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? 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
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Impossibility (subject matter lost or destroyed Changed Circumstances Bankruptcy War Sole Proprietorships and Franchises What are the advantages and disadvantages of sole proprietorships? Major Disadvantage-  the owner is personally liable for all losses or liabilities incurred  by the business enterprise Garden City Boxing Club, Inc v. Dominguez (2006) Ex. Snacks Fifth Avenue- lost everything when they went to court for copyright  infringement  Advantages: The owner is in complete control and receives all profits Flexibility Ease of creation; maintenance What is a franchise? Franchise-  Agreement that allows Franchisor  (owner of trademark, trade name or  copyright) to license to Franchisee  the trade mark, trade name or copyright in the sale of  goods or services What are the different types of franchises? Distributorship Chain Style Business Operation Manufacturing or Processing Arrangement What are the laws governing franchises? Primarily governed by contract law UCC Article 2 governs franchises for sales of goods Federal Regulation of Franchises
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Industry-Specific Standards:  protect franchisee from unreasonable demands and bad  faith termination The FTC Franchise Rule:  disclosures State Protection for Franchisees. Protection from unfair trade practices and bad faith terminations. Disclosure documentation (Franchise Disclosure Document), including costs of  operation, recurring expenses, profits earned, and substantiating of these figures.
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