Explore BrainMass
Share

Law of Agency

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

1. What have been the main points in the history of the law of agency? What duties does an agent owe to the principal? What are the differences between actual and apparent authority and determine which might involve a greater likelihood of liability?

2. What are the rules concerning pre-employment testing? What practices (interview questions, tests, background checks, etc.) are allowable during the interview process? Can a business best protect itself during the hiring process given these constraints?

3. What is the primary federal law that set the stage for our current employment law environment? What is the impact of various employment laws on the workplace? How has affirmative action influenced hiring practices?

© BrainMass Inc. brainmass.com October 16, 2018, 10:09 pm ad1c9bdddf
https://brainmass.com/business/business-law/law-of-agency-210177

Solution Preview

1. What have been the main points in the history of the law of agency?
"Qui facit per alium, facit per se," is the Latin term for "Law of Agency." The definition for this term is "he who acts through another is deemed in low to do it himself." - GOOGLE BOOK - This helps us in understanding the question.

The main points of agency law -
1 - Historically the relation originated in status, which may rest upon a fiction of identity but with the growth of individualism and the progress from the status to contract. Thus, the relation has come to be a consensual one.
2 - To represent the will of the constituent to third persons with a view to establishing new legal relations between such persons and the constituent by creating voluntary primary obligations with their correlative rights.
3 - To perform for the constituent operative or mechanical duties not intended to create any new legal relations between him and third persons.

The consequences include:
1) To establish new legal relations between the constituent and representative.
2) To establish new legal relations between the principal and third persons.
3) To create new legal relations between the servant and third persons.

In summary, law of agency is a principal/agent relationship where one person has the authority to act on the behalf of another.

What duties does an agent owe to the principal?

Once the contract is fully executed, the agent commences the agreement. By executing the contract he or she renders themselves liable to the principal and will become liable for any sustained losses. The agent is legally bound to exercise on behalf of the principal in good faith. The stipulation of good faith enables the agent to act on the behalf of the principal, or in his name. The agent must not be negligent and must remain within the scope of duties bestowed upon him. The agent must also act with diligence and due care. The agent should not make a profit beyond the agreed upon amount for acting as agent. All of the doings and acts of the agent must be solely for the purpose of fulfilling the contract as executed. The agent must also keep the property of the principal separate from his own. By doing this, the agent ensures the he will act on behalf of the principal in good faith and in compliance within the boundaries of the law.

In summary, an agent acts on behalf of a principal for the good of the principal. An agent's first responsibility is to his principal. If the agent does not proceed pursuant to the duties owed, the agent will be in breach.

What are the differences between actual and apparent authority and determine which might involve a greater likelihood of liability?

Actual authority is given through express authority, whereas the authority is direct, clear and definite and is in writing or can also be orally expressed. Power of Attorney is an example of actual authority. This document is an agreement that authorizes one to act as agent for another.

Apparent authority is not actual authority. In court, apparent authority has been invoked on equitable grounds. The reasoning is to prevent a third party from doing unjust injury. There are certain elements that must be found prior to ...

Solution Summary

The solution discusses the main points of law of agency; primary federal law for current employment environment

$2.19
Similar Posting

Age Discrimination in Employment Act, labor law, incorporation, OSHA, agency

1) The age Discrimination in Employment Act make it illegal for:
A) employers to have a seniority system (B) employers to have a mandatory retirement age for most jobs (C) employers to know the age of job applicants before making a hiring decision (D) employers to hire only employees who are 40 and over (E) employers to have a workforce comprised primarily of very young or very old workers.

2) What is a lockout in connection with labor law?
A) an action by management to prevent workers from entering the company's premise(B) an action by workers to prevent customers from entering the company's premise(C) an action by workers to prevent management from entering the company's premises (D) an action by management to prevent union organizers from entering the company's premises(E) an action by worker to prevent suppliers from entering the company premises.

3) Paul, who collect old cars, hires Andy to find and purchase a 1965 ford mustang on his behalf. Andy sees the car advertised that might be what Paul has in mind. Andy examines the car and falls in love with it. He decides to purchase it himself. Andy has:
A) usurped an opportunity (B) engaged in self-dealing (C) not violated the duty of loyalty (D) competed with the principal

4) Mary is planning to form a corporation to manufacture and distribute electric solar panel. She will sell the panels only in the Rocky Mountain states. These panel will be manufactured at two factories, one in Illinois and one in Florida. The headquarters of this company will be in Louisiana. In which state(s) could Mary incorporate this business?
A) Florida, Illinois, or Louisiana (B) Louisiana only (C) Louisiana or any state in which the product are sold (D) Florida, Illinois, Louisiana, or any state in which the product sold. (E) Any of the fifty states

5) In what way can officers and directors protect themselves from liability for action taken as an officer or director
A) by having the corporation indemnify the officers and directors (B) by having the corporation purchase liability insurance or indemnity the officers and directors or do both (C) by having the corporation purchase liability insurance or indemnify the officers and directors but the corporation cannot do both (D) by having the corporation purchase liability insurance to cover such losses. (E) the directors and officers can purchase their own insurance, but is not a proper expenditure of corporate funds to pay for reimbursement of and directors for falling to do what they were hired to do.

6) The DEF Corporation is incorporated in Texas. If wishes to do business in Oklahoma. Before DEF can legally do business in Oklahoma, which of the following must it do.
A) DEF must qualify (register) to be business in Oklahoma (B) Since DEF is Texas corporation, it cannot do business in Oklahoma (C) DEF must domicile itself in Oklahoma (D) DEF must Incorporate in Oklahoma (E) Nothing; DEF automatically has a constitutional right to do business in Oklahoma.

7) In deciding sexual harassment cases, some courts have applied:
A) the reasonable women standard (B) the reciprocal conduct standard (C) workplace reality standard (D) liberal society standard

8) Which of the following is true about a corporation being a general partner in limited partnership.
A) Corporation can be a general partner in a limited partnership only if there is at least one other general partner that is not a corporation (B) A corporation can be a general partner in a limited partner in a limited partnership only if it is not the sole general partner in the limited partnership.(C) A corporate can be a general partner in a limited partnership even if it is the only general partner (D) A corporation cannot be a general partner in a limited partnership.

9) Which of the following best describe the employment at will doctrine
A) Employee remains employed only if the employee want to be employed (B) Employee remain employed only if the employer wants them to be employed (C) Employee remains employed only if the employee and employer wants the employment relationship to continue (D) Whether an employment relationship continues is based on the will of the government.

10) Under the occupational safety and health act:
A) complaints are handled by Equal Employment Opportunity Commission. (B) purchasers of a company's product are assured that they are safe for use in the home. (C) a company be found to be in violation even if a specific safety regulation is not violated(D) very few safety standards have actually been adopted.

11) Compared to an employee, an independent contractor is characterized by:
A) more freedom to do her work in the manner she determines (B) less ability to hire other to assist her (C) a lack of liability for her own action (D) not being paid as much for the work performed.

12) Which of the following is statutes amended the national labor relation act?
A) Norris -LaGuardia Act (B) labor-management relations act (C) worker adjustment and retraining notification act (D) labor-management reporting and disclosure act.

13) Center City adopted a rule that all employees of Center City had to live within the city limits. Center City is the right next to Elmville. Center City has no African Americans, but 1/3 of the residents of Elmville are African American. Due to the rules,
no employee of center city is African American. The rule is most likely:
A) Pattern of practice of discrimination (B) not illegal discrimination (C) disparate impact discrimination from a facially neutral rule (D) national origin discrimination (E) disparate treatment discrimination

14) Apparent authority can be best described as a situation where :
A) the principle has made representation to the third party that someone is to act as her agent (B) the conduct of two parties indicates that they are acting in a principal and agent capacity.(C) the principal and agent undertake actions in accordance with their earlier agreement that one act as agent for the other (D) the agent has made representation to a third party that is acting as an agent for another (E) both Band C

15) Agent enter into a contract with a third party on behalf of principal . Agent told 3 party that this contract was being entered into on behalf of someone else. But did not identify Principal to third party. A couple of weeks later, Principle disappears and third party wants to hold Agents to contract Third party can:
A) not recover from agent because third party must first try to recover from principal (B) recover from agent because agent acted on behalf of an undisclosed principle (C) recover from agent because agent did not disclosed the identity of principal (D)not recover from agent because agent had disclosed the existence of principal (E) recover from agent because agent because agent had a duty to ensure that performed on the contract

View Full Posting Details