Beta Corporation Case

In response to learning activity 1 question 1, I agree that Beta Corporation is the principal. It is clearly stated in the text that “under corporation law the officers and all employees are agents of the corporation” (Advanced Business law and the Legal Environment, 2014, pg. 1325). However, I do not agree with your evaluation of the employees as principals. Arnold, Carol, Dave, and Erin are all agents of Beta Corporation. However, I may be inclined to argue that Carol, Dave, and Erin are all subagents of Arnold. This would hold true for all other employees of Beta Corporation. Due to the fact that Beta Corporation can be held liable for the actions of any of their employees, I believe that they are all therefore agents of Beta Corporation. As to Fred, I agree with you that he is an independent contractor and therefore not an agent. By reading the text, I came to the conclusion that the standard test for determining if someone is an agent or not is whether the corporation can be held liable for their actions. …show more content…
A constructive trust is a remedy to obtain anything that “an agent obtains by virtue of the employment or agency relationship” in this case and unlawfully retains (Clarkson, K., Miller, R., & Cross, F. (2010), pg. 635). However, Ella is also liable for breach of contract and conversion. Conversion is “the civil equivalent of a theft offense” and as Ella wrongfully retained possession of something that belonged to Fab, she is guilty of this tort as well (Advanced Business law and the Legal Environment, 2014, pg. 399). Also, as an agent, Ella has entered into an agreement with Fab and by not performing as required by the agreement has committed breach of