Directions (hide this section)

1. Click (memorize) in a memorizable table below, to begin a flashcard-like process ♦ Try clicking (memorize) in both columns (to decide which side to start with) 2. Guess the answer in your head 3. Click the buttons and follow the directions at the bottom of the table See Help for more detailed directions

Agency Relationships

A relationship between two parties in which one party (the agent) agrees to represent or act for the other (the principal).

Agency

Question (memorize)	Answer (memorize)
Principal	Master or Employer
Agent	Servant or Employee

Two Types of Agency

Types (memorize)	Characteristics (memorize)
Master/Servant	level of supervision, level of control, nature of work, regular hours/pay, length of employment
Independent Contractor	Hired for a task, little control

Agency Formation

Forms (memorize)	Definition (memorize)
Express	Written or Oral
Apparent	Created by Acts of Principal (principal is allowing somebody to act in a way that a third party thinks they are working for the principal a.k.a. Agency by Estoppel)
Ratification	Agency after the fact (they are not your agent and you don't know them, but they do the work and put together a deal and then bring the deal to you {this is dangerous, and you should investigate to be sure they didn't do anything wrong while coming up with this deal, or you could be liable})

Agent's Responsibilities

Duty (memorize)	Definition (memorize)
Loyalty	you can only work for one side of the deal, you have to pick a side.
Obedience	you cannot make money on a deal when you're working for the principal (no money on the side)
Notification	you have to do the job the way the principal tells you, unless it's illegal, and you have to tell the principal about important information about the company/deal
Accounting	you have to account to the principal for money and inventory
Performance	you have to do your job to the best of your ability

Principal's Responsibilities

Duty (memorize)	Defenition (memorize)
Pay	self explanitory (only exception - Gratuitous Agency a.k.a. volunteer work)
Cooperate	must give directions on how job is to be done.
Reimburse & Indemnify	Pay for extra monies spent in completing the job (ie. tolls, etc.), and Pay if you screw up and you/they get sued.

 

Agent's Authority

The agent acts as you, but you diliniate how much authority they have in your stead.

Authority (memorize)	Definition (memorize)
Express	Written or Oral
Implied	Extension of Express authority, authority that goes along with the job title.
Apparent	Created by Acts of Principal (the principal hasn't expressed it, it's not implied, but you're still doing it and the boss allows it and a third party witnesses the boss allowing the action)

 

Contract Liability of Principal for Acts of Agent

Liability is the same for servants as for independent contractors.

 

Principal (memorize)	Definition (memorize)
Disclosed Principal	they disclose they are working for the principal and identify them
Partial Disclosed Principal	example: the agent is told to buy baseball bats, but not to mention the principal. (if the principal doesn't pay, the seller can sue the agent and the principal)
Undisclosed Principal	example: the agent is told to buy baseball bats, but to act as if they themself are the principal "don't tell them about me at all"

Tort Liability of Principal for Acts of Agent

Liability is different for servants and independent contractors

Tort Liability (memorize)	(memorize)
Respondeat Superior	Latin for "Let the Master Respond", the master is liable for the servant's wrongful acts while acting in the scope of their agency/employment.
Master/Servant	During Scope of Employment, Not During Frolic (master is responsible for the torts of their agent during the scope of employment)
Indepenent Contractor	The principal IS NOT responsible for the torts of an I.C. EXCEPT for: Inherently Dangerous Activity (ex. explosives), Neglient Hiring (ex. hiring a sex offender to be a dorm security guard)

Termination of Agency

Question (memorize)	Answer (memorize)
Action Needed	Give Public/Constructive Notice, or Private Written Notice

 

Question (memorize)	Answer (memorize)
Lingering Apparent Authority	When you fail to give the above

At-Will Employment

Almost all jobs in the U.S. are At-Will Employment

 

Question (memorize)	Answer (memorize)
Fire/Quite at Will	Without Notice, and there is no recourse

Exceptions (to no recourse for At-Will Employment)

Question (memorize)	Answer (memorize)
Implied Contracts	(ex. Manuals, unless it has specific writing noting the "manual has no contractual obligations"
Whistle-Blower	if an employee reports bosses for breaking a statute, the Whistle-Blower exemption must be named in the statute
Descrimination	(self explanitory)

 

 

Add a section to this page!

add section - Click this button to contribute to this page (by adding a section here).

Memorize all (on this page)