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The Doctrine of Apparent Authority

- Discuss apparent authority, generally.
- Include an understanding of risk management.
- Discuss the relationship between physician and hospital (or other authority/agency).
- What conclusions would you as a health administrator make about the relationship between physician and agency?
- How can health administrators help the relationship be productive for both parties?

Solution Preview

In regard to authority within an organization, an individual is granted authority when they are given the appearance of being the agent within the organization that possesses the autonomy and power to act for the principal interests of the organization. Under the law, it is generally accepted that the principal or employer is is liable for all of the acts of the agent or employee even when someone who isn't legally an agent for organization is given authority by the principal to engage in actions for the organization. The principal or the organization will still be liable for the actions of agent that is working on behalf of the organization. Since under the law of agency the employer (the principal) is liable for the acts of his employee (agent), if a person who is not an agent appears to an outsider (a customer) to have been given authority by the principal, then the principal is stuck for the acts of anyone he allows to appear to have authority.

When attempting to engage in risk management, ...

Solution Summary

Guidelines for writing a paper on the Doctrine of Apparent Authority (DAA) are provided.