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Law of Agency

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?

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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

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