Bus Law Final Ch. 28

Front 1

Agency/ Agency Relationship

Back 1

A consensual relationship authorizing one party (the agent) to act for and on behalf of the other party (the principal). Agent, principal, 3rd party. Whatever you can do legally your agent can do; if you can't do it , your agent can't do it.

Front 2

Agent

Back 2

Person authorized to act for on behalf of the other party. Ex. Employee, independent contractors

Front 3

Principal

Back 3

Person who has a right to control the actions of the agent. Ex. Employer

Front 4

Employee Relationship

Back 4

One in which the employer (principal) has the right to control the physical conduct of the employee.

Front 5

Independent Contractor

Back 5

A person who contracts with another to do a particular job and who is not subject to the control of the other; sets the rate, time, & how its fixed; Principal has control over where they go & what they fix. Sometimes considered an agent, but not always.

Front 6

Distinction between and employee and independent contractor

Back 6

The control exerted by the Principal; look at who is under the scope of employment to see if principal is responsible for the acts of the agent.

Front 7

Scope of employment

Back 7

Agent was doing what he was supposed to be doing when he was to do it for the benefit of the employer/principal.

Front 8

Creation of agency relationship

Back 8

A principal requests another to act for him with respect to a matter and indicates that the other is to act w/o further communication, and the other consents to act.

Front 9

Formalities

Back 9

Agency is consensual relationship that may be formed by contract or agreement, agency may exist without consideration; appointments of agents for a period of more that one year must be in writing.

Front 10

Capacity

Back 10

Principal must have capacity, but not required of agent. Durable power of attorney is written instrument that allows agent's authority to continue when the principal becomes incapacitated.

Front 11

Gratuitous Agency

Back 11

An agency created w/o an agent's right to compensation.

Front 12

Duties of Agent to Principal

Back 12

Duty of Obedience

Duty of Good Conduct

Duty of Diligence

Duty of Inform

Duty of Account

Fiduciary Duty

Front 13

Duty of Obedience

Back 13

Agent must act in the principal's affairs only as authorized by the principal and must obey all reasonable instructions and directions.

Front 14

Duty of Good Conduct

Back 14

An agent has a duty, within the scope of the agency relationship, to act reasonably and to avoid conduct that is likely to damage the principal's interests.

Front 15

Duty of Diligence

Back 15

Agent must act with reasonable care and skill in performing the work for which he is employed; if 1 agent does it, all should do it.

Front 16

Duty to Inform

Back 16

Agent must use reasonable efforts to give the principal information relevant to the affairs entrusted to her.

Front 17

Duty to Account

Back 17

Agent must maintain and provide the principal with a true and complete account of money or other property that the agent has received or expanded on behalf of the principal.

Front 18

Fiduciary Duty (Good Faith & Fair Dealings Law)

Back 18

Agent owes a duty of utmost loyalty and good faith to the principal. Relationship built on trust & confidence of utmost loyalty and good faith; required by law; can't get rid of. Agent can't have conflicts of interest, self-dealing, duty not to compete, misappropriation, confidential information, and duty to account for financial benefits.

Front 19

Conflicts of interest

Back 19

An agent has a duty not to deal with the principal as, or on behalf of, and adverse party in a transaction connected with the agency relationship. Must act solely in the interest of his principal, not in his own interest or in the interest of another.

Front 20

Self-Dealing

Back 20

Agent has a duty not to deal with the principal as an adverse party in a transaction connected with the agency relationship; agent may not deal at arm's length with her principal.

Front 21

Duty not to compete

Back 21

Agent must not compete with his principal or act on behalf or otherwise assist any of the principal's competitors.

Front 22

Misppropriation

Back 22

Agent may not use property of the principal for the agent's own purposes or for the benefit of a third party.

Front 23

Confidential Information

Back 23

Agent may not use or disclose confidential information obtained in the course of the agency for her own benefit or the benefit of a third party.

Front 24

Duty to account for financial benefits

Back 24

Agent has a duty not to acquire any financial or other material benefits in connection with transactions conducted on behalf of the principal.

Front 25

Duties of Principal to Agent

Back 25

Contractual Duties: Compensation, Reimbursement, Indemnification.

Tort Duties

Front 26

Compensation

Back 26

A principal must compensate the agent as specified in the contract, or for the reasonable value of the service provided, if no amount is specified; Unless gratuitous. If agent breaches duty of obedience or loyalty: no more money.

Front 27

Reimbursement

Back 27

The principal must pay back to the agent authorized payments the agent has made on the principal's behalf. Used for small things paid for on your behalf withing the Scope of Employment.

Front 28

Indemnification

Back 28

The principal must pay the agent for losses the agent incurred while acting as directed by the principal; Compensate agent for any loss agent incurs or any payment for principal; Ex. Workers' Comp.

Front 29

Tort Duties

Back 29

Include the duty to provide an employee with reasonably safe conditions of employment and to warn the employee of any unreasonable risk involved in the employment.

Front 30

Termination of Agency

Back 30

Acts of Parties: lapse of time, mutual agreement of parties, revocation of authority, renunciation by agent.

Operation of Law: death, incapacity, change in circumstances.

Front 31

Lapse of Time

Back 31

Agent's actual authority terminates as agreed by the agent and the principal; Authority conferred upon an agent for a specified time terminates when that period expires or after a reasonable period.

Front 32

Mutual Agreement of the Parties

Back 32

May be terminated at any time by mutual agreement of the principal and the agent.

Front 33

Revocation of Authority

Back 33

Principal may revoke an agent's authority at any time by notifying the agent; if revocation constitutes a breach of contract by principal, agent may recover damages from principal. Revokes agent's power to act on his/her behalf.

Front 34

Renunciation by the Agent

Back 34

Agent can end the agency by notifying the principal that she renounces the authority given her by the principal. If gratuitous, agent may renounce it w/o liability to principal. If agency is contracted to continue for a specified time, an unjustified renunciation prior to expiration of that time is a breach of contract.

Front 35

Death

Back 35

Death of an individual agent or principal terminates the actual authority of the agent, but not apparent authority, once agent has notice of principal's death.

Front 36

Incapacity

Back 36

Incapacity of principal that occurs after the formation of the agency terminates the agent's actual authority when agent has notice of principal's incapacity.

Front 37

Change in Circumstances

Back 37

An agent's actual authority terminates whenever the agent should reasonably conclude that the principal no longer would assent tot he agent's taking action on the principal's behalf.