Agency

Front 1

AGENCY: _______ relationship authorizing an AGENT to represent a ________ in business dealings w/ _______ ________.

Back 1

AGENCY: LEGAL relationship authorizing an AGENT to represent a PRINCIPAL in business dealings w/ THIRD PARTIES.

Front 2

CREATION OF AGENCY RELATIONSHIP

o Principal must have _________ capacity.

o Agent must have __________ capacity (ie. he need _____ have contractual capacity).

o _________ of _______ parties is required.

o _____ consideration is necessary.

o ____ writing is required (unless K falls w/i SOF).

o An agent has 2 duties to the principal implied by law:

(1) Duty of _________; and

(2) Duty of _________.

Back 2

CREATION OF AGENCY RELATIONSHIP

o Principal must have CONTRACTUAL capacity.

o Agent must have MINIMAL capacity (ie. he need NOT have contractual capacity).

o CONSENT of BOTH parties is required.

o NO consideration is necessary.

o NO writing is required (unless K falls w/i SOF).

o An agent has 2 duties to the principal implied by law:

(1) Duty of LOYALTY; and

(2) Duty of CARE.

Front 3

A principal must have _________ capacity.

o Thus, a MINOR'S appointment of an agency is _________.

o __________ and ___________ ORGANIZATIONS cannot be principals.

Back 3

A principal must have CONTRACTUAL capacity.

o Thus, a MINOR'S appointment of an agency is VOIDABLE.

o INCOMPETENTS and UNINCORPORATED ORGANIZATIONS cannot be principals.

Front 4

TRUE/FALSE:

One may be an agent even though he has no contractual capacity.

Back 4

TRUE!

One may be an agent EVEN THOUGH he has NO contractual capacity.

HOWEVER, an agent cannot act for the principal if he has literally no mental capacity.

Front 5

A _________ must have contractual capacity but an _______ need not.

Thus, a _______ can be an agent but not a ________.

Back 5

A PRINCIPAL must have contractual capacity but an AGENT need not.

Thus, a MINOR can be an agent but not a PRINCIPAL.

Front 6

TRUE/FALSE?

Consideration is required to establish an agency relationship.

Back 6

FALSE!

NO consideration is necessary to establish an agency relationship!

Front 7

MODES OF CREATING AGENCY RELATIONSHIP

An agency relationship can be created by:

(1) ______ OF THE PARTIES; or by

(2) _______ OF LAW.

Back 7

MODES OF CREATING AGENCY RELATIONSHIP

An agency relationship can be created by:

(1) ACT OF THE PARTIES; or by

(2) OPERATION OF LAW.

Front 8

BY ACT OF PARTIES

Parties may create an agency by:

(1) ________ between the principal and agent (ie. ________ AUTHORITY);

(2) _________ out by the principal (ie. ________ AUTHORITY); or

(3) _____________.

Back 8

BY ACT OF PARTIES

Parties may create an agency by:

(1) AGREEMENT between the principal and agent (ie. ACTUAL AUTHORITY);

(2) HOLDING out by the principal (ie. APPARENT AUTHORITY); or

(3) RATIFICATION.

Front 9

BY OPERATION OF LAW

An agency may be created by:

(1) _________ (requires third-party _________ on principal's communication); or by

(2) __________.

Back 9

BY OPERATION OF LAW

An agency may be created by:

(1) ESTOPPEL (requires third-party RELIANCE on principal's communication); or by

(2) STATUTE.

Front 10

How is ACTUAL AUTHORITY created?

Back 10

ACTUAL AUTHORITY = Created BY AGREEMENT between the principal and agent.

Front 11

How is APPARENT AUTHORITY created?

Back 11

APPARENT AUTHORITY = Created by the HOLDING OUT of the agent by the principal.

Front 12

ACTUAL AUTHORITY

This is authority that the _______ reasonably ________ she possesses based on the _________ dealings w/ her.

CLUE: Look at principal/agent.

Back 12

ACTUAL AUTHORITY

This is authority that the AGENT reasonably BELIEVES she possesses based on the PRINCIPAL'S dealings w/ her.

CLUE: Look at principal/agent.

Front 13

APPARENT AUTHORITY

Authority that arises from the _________ beliefs of _________ __________.

CLUE: Look at principal/third party.

Back 13

APPARENT AUTHORITY

Authority that arises from the REASONABLE beliefs of THIRD PARTIES.

Ex. If the principal holds another out.

CLUE: Look at principal/third party.

Front 14

Does apparent authority exist?

Is there a _______ belief by a _______ PARTY that an _______ has authority to act on behalf of the ________?

EXAMPLE: The principal "_______ _____" another as possessing certain authority, thereby ________ others to reasonably ________ that authority exists.

Back 14

Does apparent authority exist?

Is there a REASONABLE belief by a THIRD PARTY that an AGENT has authority to act on behalf of the PRINCIPAL?

EXAMPLE: The principal "HOLDS OUT" another as possessing certain authority, thereby INDUCING others to reasonably BELIEVE that authority exists.

Front 15

A principal generally has ____ duty to _________ a subagent EVEN IF the _______ had authority to hire the subagent.

Back 15

A principal generally has NO duty to COMPENSATE a subagent EVEN IF the AGENT had authority to hire the subagent.

Front 16

LIABILITY FOR INDEPENDENT CONTRACTORS

In general, principals are NOT liable for torts of independent contractors.

HOWEVER, a principal will incur ______ liability where:

(1) ___________ DANGEROUS ACTIVITIES are involved;

(2) ___________ duties have been delegated; or

(3) ___________ knowingly selected an incompetent I.C.

NOTE: If the principal is negligent in selecting I.C., he is only liable for his own negligence and NOT negligence of I.C.).

Back 16

LIABILITY FOR INDEPENDENT CONTRACTORS

In general, principals are NOT liable for torts of independent contractors.

HOWEVER, a principal will incur DIRECT liability where:

(1) INHERENTLY DANGEROUS ACTIVITIES are involved;

(2) NON-DELEGABLE duties have been delegated; or

(3) PRINCIPAL knowingly selected an incompetent I.C.

NOTE: If the principal is negligent in selecting I.C., he is only liable for his own negligence and NOT negligence of I.C.

Front 17

An agent has ________ LIABILITY to the principal for breaches by a subagent.

Back 17

An agent has ABSOLUTE LIABILITY to the principal for breaches by a subagent.

Front 18

ESTOPPEL

This requires _______ by a third party on a principal's communication.

Back 18

ESTOPPEL

This requires RELIANCE by a third party on a principal's communication.

Front 19

An employee can LEAVE the scope of his employment by taking a ________.

This is a trip well outside the range of that __________.

NOTE: A mere _______ is NOT ENOUGH to _______ the prinicpal from liability.

Back 19

An employee can LEAVE the scope of his employment by taking a FROLIC.

This is a trip well outside the range of that AUTHORIZED.

NOTE: A mere DETOUR is NOT ENOUGH to RELEASE the prinicpal from liability.

Front 20

SCOPE OF EMPLOYMENT

This depends on whether the principal has the right to __________ the ________ in which the work was performed.

o The > the control, it is (more/less) likely the agent is an EMPLOYEE rather than an _________ __________.

Back 20

SCOPE OF EMPLOYMENT

This depends on whether the principal has the right to CONTROL the MANNER in which the work was performed.

o The > the control, it is MORE likely the agent is an EMPLOYEE rather than an INDEPENDENT CONTRACTOR.

Front 21

DOCTRINE OF RESPONDEAT SUPERIOR

Under this doctrine, a ________ may be liable to ________ _________ for _______ committed by her AGENT.

Back 21

DOCTRINE OF RESPONDEAT SUPERIOR

Under this doctrine, a PRINCIPAL may be liable to THIRD PARTIES for TORTS committed by her AGENT.

***NOTE: This is with TORTS, NOT K's!!!

Front 22

RESPONDEAT SUPERIOR

Principal liable for _______ of his agent committed w/i the ________ OF EMPLOYMENT.

HOWEVER, principle NOT liable for torts of an __________ ___________.

Back 22

RESPONDEAT SUPERIOR

Principal liable for TORTS of his agent committed w/i the SCOPE OF EMPLOYMENT.

HOWEVER, principal NOT liable for torts of an INDEPENDENT CONTRACTOR.

Front 23

DOCTRINE OF RESPONDEAT SUPERIOR

To establish liability, there MUST be:

(1) An _________-___________ RELATIONSHIP; and

(2) The employee's _________ conduct must have been committed w/i the ________ of the employment ___________.

Back 23

DOCTRINE OF RESPONDEAT SUPERIOR

To establish liability, there MUST be:

(1) An EMPLOYER-EMPLOYEE RELATIONSHIP; and

(2) The employee's WRONGFUL conduct must have been committed w/i the SCOPE of the employment RELATIONSHIP.

Front 24

CREATION BY RATIFICATION

A principal may NOT ratify an agency:

(1) If performance would be ________ at the time of ratification;

(2) After the third party __________; or

(3) If there has been a ________ CHANGE in circumstances.

Back 24

CREATION BY RATIFICATION

A principal may NOT ratify an agency:

(1) If performance would be ILLEGAL at the time of ratification;

(2) After the third party WITHDRAWS; or

(3) If there has been a MATERIAL CHANGE in circumstances.

Front 25

RATIFICATION

When the principal ratifies an ___________ transaction by the agent, the principal becomes ________ on the K.

To RATIFY a transaction, a principal MUST:

(1) Know the _________ _______ of the transaction;

(2) _______ the entire transaction; and

(3) Have the ________ to act.

Back 25

RATIFICATION

When the principal ratifies an UNAUTHORIZED transaction by the agent, the principal becomes BOUND on the K.

To RATIFY a transaction, a principal MUST:

(1) Know the MATERIAL FACTS of the transaction;

(2) ACCEPT the entire transaction; and

(3) Have the CAPACITY to act.

Front 26

An agent has _________ LIABILITY to the principal for breaches by a subagent.

If a subagent is UNAUTHORIZED, he owes ____ duties to the _________, but DOES owe duties to the AGENT.

Back 26

An agent has ABSOLUTE LIABILITY to the principal for breaches by a subagent.

If a subagent is UNAUTHORIZED, he owes NO duties to the PRINCIPAL, but DOES owe duties to the AGENT.

Front 27

If the agency agreement is silent regarding compensation, the agent is entitled to _________ compensation.

A principal generally owes ____ duty to compensate a subagent EVEN IF the agent had authority to hire the subagent.

Back 27

If the agency agreement is silent regarding compensation, the agent is entitled to REASONABLE compensation.

A principal generally owes NO duty to compensate a subagent EVEN IF the agent had authority to hire the subagent.

Front 28

DUTIES OF PRINCIPAL

Principal's duties:
o ___________________
o COOPERATION
o _________/REIMBURSEMENT
o ________ contractual duties

Agent's remedies for principal's breach of duties:
o __________ remedies
o POSSESSORY _______

Back 28

DUTIES OF PRINCIPAL

Principal's duties:
o COMPENSATION
o COOPERATION
o INDEMNITY/REIMBURSEMENT
o EXPRESS contractual duties

Agent's remedies for principal's breach of duties:
o CONTRACTUAL remedies
o POSSESSORY LIEN

Front 29

DUTIES OF AGENT

Agent's duties:
o ___________ CARE
o __________
o OBEDIENCE
o ________ contractual duties


Principal's remedies for agent's breach of duties:
o _____ remedies (if agent is _________)
o TORT remedies
o __________ TRUST
o Action for _______ PROFITS
o Withhold __________

Back 29

DUTIES OF AGENT

Agent's duties:
o REASONABLE CARE
o LOYALTY
o OBEDIENCE
o EXPRESS contractual duties


Principal's remedies for agent's breach of duties:
o K remedies (if agent is COMPENSATED)
o TORT remedies
o CONSTRUCTIVE TRUST
o Action for SECRET PROFITS
o Withhold COMPENSATION

Front 30

ACTUAL AUTHORITY: Authority an agent REASONABLY BELIEVES he possesses based on principal's dealings w/ him.

May be _______ or IMPLIED.

EXPRESS AUTHORITY is that which is contained w/i the four _________ of the agency agreement.

IMPLIED AUTHORITY is that which the agent ________ believes he has as a result of the _________ actions.

Back 30

ACTUAL AUTHORITY: Authority an agent REASONABLY BELIEVES he possesses based on principal's dealings w/ him.

May be EXPRESS or IMPLIED.

EXPRESS AUTHORITY is that which is contained w/i the four CORNERS of the agency agreement.

IMPLIED AUTHORITY is that which the agent REASONABLY believes he has as a result of the PRINCIPAL'S actions.

Front 31

ACTUAL AUTHORITY - IMPLIED

This includes authority:

(1) __________ TO EXPRESS authority;

(2) ARISING OUT OF _______ known to the agent;

(3) Resulting from PRIOR ___________ by the principal;

(4) TO TAKE ___________ MEASURES;

(5) To ________ AUTHORITY in cases of __________ ACTS, where CIRCUMSTANCES REQUIRE, where PERFORMANCE IS _________ w/o delegation, or where DELEGATION IS ________;

(6) TO _____ FOR AND ACCEPT __________ OF GOODS where there is authority to purchase;

(7) TO GIVE ___________ WARRANTIES as to fitness and quality, COLLECT ________, and ________ where there is authority to sell; and

(8) TO MANAGE ___________.

Back 31

ACTUAL AUTHORITY - IMPLIED

This includes authority:

(1) INCIDENTAL TO EXPRESS authority;

(2) ARISING OUT OF CUSTOM known to the agent;

(3) Resulting from PRIOR ACQUIESCENCE by the principal;

(4) TO TAKE EMERGENCY MEASURES;

(5) To DELEGATE AUTHORITY in cases of MINISTERIAL ACTS, where CIRCUMSTANCES REQUIRE, where PERFORMANCE IS IMPOSSIBLE w/o delegation, or where DELEGATION IS CUSTOMARY;

(6) TO PAY FOR AND ACCEPT DELIVERY OF GOODS where there is authority to purchase;

(7) TO GIVE GENERAL WARRANTIES as to fitness and quality, COLLECT PAYMENT, and DELIVER where there is authority to sell; and

(8) TO MANAGE INVESTMENTS.

Front 32

TERMINATION OF ACTUAL AUTHORITY

Termination of actual authority occurs by:

(1) ________ OF A SPECIFIED OR __________ TIME;

(2) THE ____________ OF A SPECIFIED EVENT;

(3) A ________ IN CIRCUMSTANCES;

(4) AGENT'S BREACH OF ___________ DUTY;

(5) EITHER PARTY'S _________ TERMINATION; or

(6) OPERATION OF _______.

Back 32

TERMINATION OF ACTUAL AUTHORITY

Termination of actual authority occurs by:

(1) LAPSE OF A SPECIFIED OR REASONABLE TIME;

(2) THE HAPPENING OF A SPECIFIED EVENT;

(3) A CHANGE IN CIRCUMSTANCES;

(4) AGENT'S BREACH OF FIDUCIARY DUTY;

(5) EITHER PARTY'S UNILATERAL TERMINATION; or

(6) OPERATION OF LAW.

Front 33

_______ terminates an agency UNLESS the agency is IRREVOCABLE.

Back 33

DEATH terminates an agency UNLESS the agency is IRREVOCABLE.

Front 34

IRREVOCABLE AGENCIES

Neither an agency coupled w/ an _________ nor a power given as ____________ may be unilaterally terminated by the principal if the agency was given to ________ the agent's (or a third party's) rights and it is supported by __________. Neither will such agencies be terminated by operation of ______.

Back 34

IRREVOCABLE AGENCIES

Neither an agency coupled w/ an INTEREST nor a power given as CONSIDERATION may be unilaterally terminated by the principal if the agency was given to PROTECT the agent's (or a third party's) rights and it is supported by CONSIDERATION. Neither will such agencies be terminated by operation of LAW.

Front 35

________ AUTHORITY arises from the reasonable beliefs of THIRD PARTIES.

Back 35

APPARENT AUTHORITY arises from the reasonable beliefs of THIRD PARTIES.

Front 36

ACTUAL VS. APPARENT AUTHORITY

In an APPARENT AUTHORITY situation, you need to discuss what transpired between the PRINCIPAL and the (agent/third party).

In an ACTUAL AUTHORITY situation, you need to discuss what transpired between the PRINCIPAL and (agent/third party).

Back 36

ACTUAL VS. APPARENT AUTHORITY

In an APPARENT AUTHORITY situation, you need to discuss what transpired between the PRINCIPAL and the THIRD PARTY.

In an ACTUAL AUTHORITY situation, you need to discuss what transpired between the PRINCIPAL and the AGENT.

Front 37

________ or ___________ of principal terminates ALL AUTHORITY of the agent w/o _________ to either the agent or third parties.

Back 37

DEATH or INCOMPETENCY of principal terminates ALL AUTHORITY of the agent w/o NOTICE to either the agent or third parties.

Front 38

NO ACTUAL AUTHORITY - APPARENT AUTHORITY

Sometimes an agent acts w/ no actual authority, yet a principal MAY STILL BE BOUND:

(1) IMPOSTERS

(2) _________ APPARENT AUTHORITY

o Notice _____ be necessary

o Writing _________ authority

o Death or _________

Back 38

NO ACTUAL AUTHORITY - APPARENT AUTHORITY

Sometimes an agent acts w/ no actual authority, yet a principal MAY STILL BE BOUND:

(1) IMPOSTERS

(2) LINGERING APPARENT AUTHORITY

o Notice MAY be necessary

o Writing MANIFESTING authority

o Death or INCOMPETENCY

Front 39

WHEN AGENT EXCEEDS ACTUAL AUTHORITY - APPARENT AUTHORITY

There are situations where the agent exceeds his authority, yet the principal is STILL bound:

(1) PRIOR _____

(2) POSITION

Back 39

WHEN AGENT EXCEEDS ACTUAL AUTHORITY - APPARENT AUTHORITY

There are situations where the agent exceeds his authority, yet the principal is STILL bound:

(1) PRIOR ACT

(2) POSITION

Front 40

WHEN AGENT EXCEEDS ACTUAL AUTHORITY - INHERENT AUTHORITY

Inherent authority results in the principal being bound EVEN THOUGH the agent had no _____ authority to perform the particular act.

Examples:
o Respondeat ________
o Conduct similar to that ________

Back 40

WHEN AGENT EXCEEDS ACTUAL AUTHORITY - INHERENT AUTHORITY

Inherent authority results in the principal being bound EVEN THOUGH the agent had no ACTUAL authority to perform the particular act.

Examples:
o Respondeat SUPERIOR
o Conduct similar to that AUTHORIZED

Front 41

TYPES OF APPARENT AUTHORITY

- WHEN AGENT HAS ___ ACTUAL AUTHORITY

- WHEN AGENT ________ ACTUAL AUTHORITY

- INHERENT AUTHORITY (INHERENT AGENCY POWER)

Back 41

TYPES OF APPARENT AUTHORITY

- WHEN AGENT HAS NO ACTUAL AUTHORITY

- WHEN AGENT EXCEEDS ACTUAL AUTHORITY

- INHERENT AUTHORITY (INHERENT AGENCY POWER)

Front 42

RATIFICATION

An agency is created by ratification.

When? When an AGENT purports to act on behalf of a _______ w/o ANY ________ at all, but ________ subsequently __________ the act and becomes BOUND.

Back 42

RATIFICATION

An agency is created by ratification.

When? When an AGENT purports to act on behalf of a PRINCIPAL w/o ANY AUTHORITY at all, but PRINCIPAL subsequently VALIDATES the act and becomes BOUND.

Front 43

RATIFICATION is a _________ ACT of the principal and requires ____ consideration.

Back 43

RATIFICATION is a UNILATERAL ACT of the principal and requires NO consideration.

Front 44

LIABILITY OF PARTIES - THIRD PARTY VS. PRINCIPAL

Principal will be ______ to third party on a ____ entered into by her ______ if the agent had VALID ________ to act.

Back 44

LIABILITY OF PARTIES - THIRD PARTY VS. PRINCIPAL

Principal will be LIABLE to third party on a K entered into by her AGENT if the agent had VALID AUTHORITY to act.

Front 45

LIABILITY OF PARTIES - THIRD PARTY VS. AGENT

The agent's liability depends on whether the principal was disclosed.

(1) DISCLOSED PRINCIPAL - A disclosed principal is ______ liable on the K, and the agent is generally ____ LIABLE.

(2) PARTIALLY DISCLOSED AND UNDISCLOSED PRINCIPALS - Results in liability for _____ the principal AND the agent.

Back 45

LIABILITY OF PARTIES - THIRD PARTY VS. AGENT

The agent's liability depends on whether the principal was disclosed.

(1) DISCLOSED PRINCIPAL - A disclosed principal is ALWAYS liable on the K, and the agent is generally NOT LIABLE.

(2) PARTIALLY DISCLOSED AND UNDISCLOSED PRINCIPALS - Results in liability for BOTH the principal AND the agent.

Front 46

REMEMBER: The type of principal is relevant ONLY when you are considering whether an _______ is liable.

Back 46

REMEMBER: The type of principal is relevant ONLY when you are considering whether an AGENT is liable.

NOTE: Do NOT discuss the type of principal when analyzing the principal's liability!

Front 47

LIABILITIES OF THE PARTIES - THIRD-PARTY LIABILITY TO PRINCIPAL AND AGENT

(1) DISCLOSED PRINCIPAL SITUATIONS: _____ the principal, NOT the ______, may enforce the K and hold the ______ ______ liable.

(2) PARTIALLY DISCLOSED AND UNDISCLOSED PRINCIPAL SITUATIONS: _______ the principal or the agent may enforce the K and hold the third party liable.

Back 47

LIABILITIES OF THE PARTIES - THIRD-PARTY LIABILITY TO PRINCIPAL AND AGENT

(1) DISCLOSED PRINCIPAL SITUATIONS: ONLY the principal, NOT the AGENT, may enforce the K and hold the THIRD PARTIES liable.

(2) PARTIALLY DISCLOSED AND UNDISCLOSED PRINCIPAL SITUATIONS: EITHER the principal or the agent may enforce the K and hold the third party liable.

Front 48

DISCLOSED PRINCIPAL

_________ AND _________ known to the third party.

Back 48

DISCLOSED PRINCIPAL

EXISTENCE AND IDENTITY known to the third party.

Front 49

UNDISCLOSED PRINCIPAL

________ IDENTITY NOR EXISTENCE is disclosed.

Back 49

UNDISCLOSED PRINCIPAL

NEITHER IDENTITY NOR EXISTENCE is disclosed.

NOTE: Makes BOTH principal + agent liable.

Front 50

PARTIALLY DISCLOSED PRINCIPAL

One whose existence is _______ but whose identity is ___________.

Back 50

PARTIALLY DISCLOSED PRINCIPAL

One whose existence is KNOWN but whose identity is UNKNOWN.

NOTE: BOTH principal and agent are liable.

Front 51

SCOPE OF EMPLOYMENT

If the nature of an employee's conduct is _________ to that which is authorized, the conduct is probably ________ the scope of employment.

Back 51

SCOPE OF EMPLOYMENT

If the nature of an employee's conduct is INCIDENTAL to that which is authorized, the conduct is probably WITHIN the scope of employment.

Front 52

TRUE/FALSE:

Intentional torts are NOT normally w/i the scope of employment.

Back 52

TRUE!

Intentional torts are NOT normally w/i the scope of employment.

Front 53

RATIFICATION

An employer may ratify an employee's ______ if the employer has _______ of all _______ FACTS.

Back 53

RATIFICATION

An employer may ratify an employee's TORTS if the employer has KNOWLEDGE of all MATERIAL FACTS.

Front 54

A principal is liable for an agent's MISREPRESENTATIONS if the agent had _______, ________, or _________ AUTHORITY to make statements concerning the subject matter involved.

Back 54

A principal is liable for an agent's MISREPRESENTATIONS if the agent had ACTUAL, APPARENT, or INHERENT AUTHORITY to make statements concerning the subject matter involved.

Front 55

PASSENGERS

An employee's invitation to passengers is ________ the scope of employment UNLESS _______ authorized by the employer.

Back 55

PASSENGERS

An employee's invitation to passengers is OUTSIDE the scope of employment UNLESS EXPRESSLY authorized by the employer.

Front 56

UNAUTHORIZED INSTRUMENTALITIES

The employer is ____ liable for torts caused by the use of ______________ different instrumentalities from those authorized (ie. those creating _______ risk of harm).

Back 56

UNAUTHORIZED INSTRUMENTALITIES

The employer is NOT liable for torts caused by the use of SUBSTANTIALLY different instrumentalities from those authorized (ie. those creating GREATER risk of harm).

Front 57

TRIPS W/ TWO PURPOSES

If the employee makes a trip w/ two purposes, it will be WITHIN the scope of employment if any SUBSTANTIAL ________ of the employer is being served.

Back 57

TRIPS W/ TWO PURPOSES

If the employee makes a trip w/ two purposes, it will be WITHIN the scope of employment if any SUBSTANTIAL PURPOSE of the employer is being served.

Front 58

SAME GENERAL NATURE AS JOB

To be w/i the scope of employment, the employee's conduct need ____ actually be authorized.

Nor does the _________ of the principal necessarily remove the conduct from the scope of employment.

If the nature of the employee's conduct is _______ or _________ to that which was authorized, the conduct is probably w/i the scope of employment.

HOWEVER, serious _______ acts are considered to be ______ the scope of employment.

Back 58

SAME GENERAL NATURE AS JOB

To be w/i the scope of employment, the employee's conduct need NOT actually be authorized.

Nor does the PROHIBITION of the principal necessarily remove the conduct from the scope of employment.

If the nature of the employee's conduct is SIMILAR or INCIDENTAL to that which was authorized, the conduct is probably w/i the scope of employment.

HOWEVER, serious CRIMINAL acts are considered to be OUTSIDE the scope of employment.

Front 59

FROLIC AND DETOUR

A _____ or SMALL DEVIATION from the employer's direction is w/i the scope of employment.

HOWEVER, a ______ or MAJOR DEVIATION requiring substantial departure from employment is _______ the scope.

Back 59

FROLIC AND DETOUR

A DETOUR or SMALL DEVIATION from the employer's direction is w/i the scope of employment.

HOWEVER, a FROLIC or MAJOR DEVIATION requiring substantial departure from employment is BEYOND the scope.

Front 60

EMPLOYEE VS. INDEPENDENT CONTRACTOR

W/ an INDEPENDENT CONTRACTOR, the principal has ____ right to control the ________ or _______ in which the job is performed.

W/ an _________, the principal _____ exercise such control.

Back 60

EMPLOYEE VS. INDEPENDENT CONTRACTOR

W/ an INDEPENDENT CONTRACTOR, the principal has NO right to control the MANNER or METHOD in which the job is performed.

W/ an EMPLOYEE, the principal DOES exercise such control.

Front 61

LIABILITIES OF PARTIES

A THIRD PARTY'S rights against the principal and agent differ depending on whether the principal's ___________ has been _________ to the third party.

Back 61

LIABILITIES OF PARTIES

A THIRD PARTY'S rights against the principal and agent differ depending on whether the principal's EXISTENCE has been DISCLOSED to the third party.

Front 62

3RD PARTY LIABILITY TO PRINCIPAL AND AGENT

DISCLOSED PRINCIPAL = ONLY _______ and NOT _______ can enforce K (ie. hold 3rd party liable).

PARTIALLY DISCLOSED/UNDISCLOSED PRINCIPAL = ______ principal ____ agent may enforce the K.

Back 62

3RD PARTY LIABILITY TO PRINCIPAL AND AGENT

DISCLOSED PRINCIPAL = ONLY PRINCIPAL and NOT AGENT may enforce K (ie. hold 3rd party liable).

PARTIALLY DISCLOSED/UNDISCLOSED PRINCIPAL = EITHER principal OR agent may enforce the K.

Front 63

IMPROPER DISPOSITION OF GOODS

Principal will be held liable for disposition of her goods by an agent __________ them:

(1) If agent was given some _______ of ownership, or

(2) If goods disposed of were sold by an agent who is a _______ in particular goods.

Back 63

IMPROPER DISPOSITION OF GOODS

Principal will be held liable for disposition of her goods by an agent POSSESSING them:

(1) If agent was given some INDICIA of ownership, or

(2) If goods disposed of were sold by an agent who is a DEALER in particular goods.

Front 64

CREATION OF AGENCY RELATIONSHIP

TRUE/FALSE:

All contractual formalities are required to create an agency relationship.

Back 64

FALSE!

NOT all contractual formalities are necessary to create an agency relationship!

Front 65

DISQUALIFICATION OF AGENTS

An agent may be disqualified for:

o ____________;

o ____________ both parties; or

o Failing to have a required _________.

Back 65

DISQUALIFICATION OF AGENTS

An agent may be disqualified for:

o SELF-DEALING;

o REPRESENTING both parties; or

o Failing to have a required LICENSE.

Front 66

Can one agree to serve as an agent gratuitously?

Back 66

Yes!

One may agree to serve as an agent gratuitously.

NOTE: NO consideration is necessary to create an agency!

Front 67

Generally, an employer is ________ for the negligence of an employee.

HOWEVER, a ________ is NOT liable for the negligence of a ________.

Back 67

Generally, an employer is LIABLE for the negligence of an employee.

HOWEVER, a BAILOR is NOT liable for the negligence of a BAILEE.

Front 68

TRUE/FALSE:

A bailor is liable for the negligence of a bailee w/ respect to the use of the bailed goods.

Back 68

FALSE!

A bailor is NOT liable for the negligence of a bailee w/ respect to the use of the bailed goods.

NOTE: Bailor=Entruster

Front 69

TRUE/FALSE:

Commuting to and from work is ordinarily NOT an activity that is w/i the scope of the employment.

Back 69

TRUE!

Commuting to and from work is ordinarily NOT an activity that is w/i the scope of the employment.