Ch. 14 - Agency Relationships

Question 1

Employee

Answer 1

Works under employer’s control. Get’s benefits, uses company tools

Question 2

Independent Contractor

Answer 2

Works independently. Provides services under a contractual agreement. Uses own tools, no benefits

Question 3

Gig economy

Answer 3

Uses independent contractors to cut costs. Controversial

Question 4

4 Ways of Creating an Agency

Answer 4

Agreement, Ratification, Estoppel, Operation of Law

Question 5

Express Authority of an agent

Answer 5

Clearly granted (oral or written)

Question 6

Implied Authority of an agent

Answer 6

Inferred from position or custom

Question 7

Apparent Authority of an agent

Answer 7

When a 3rd party reasonably believes an agent has authority

Question 8

Emergency Authority of an agent

Answer 8

arises in urgent situations

Question 9

Ratification Authority of an agent

Answer 9

Principal accepts an agent’s unauthorized action later

Question 10

Agent’s duties to Principal

Answer 10

Performance, Notification, Loyalty, Obedience, Accounting

Question 11

Equal Dignity Rule

Answer 11

If the contract must be in writing to enter into, the agent’s authority to the principal must also be in writing

Question 12

Principal’s duties to Agents

Answer 12

Compensation, Reimbursement, Cooperation, Safe working conditions

Question 13

Contract Liability in agency relationships

Answer 13

If the agent acts without authority, they may be liable

Question 14

Tort & Crime Liability in agency relationships

Answer 14

Principals can be liable for: their own negligence, employee’s tors under respondent superior, certain intentional torts if within scope of work, & authorized torts committed by agents

Question 15

Respondent superior

Answer 15

Employer is responsible for employee’s actions if done within scope of the job

Question 16

Detour

Answer 16

Still within scope of employment. Employer is responsible for actions.

Ex: Truck driver taking authorized lunch break using beacon truck

Question 17

Frolic

Answer 17

Major departure, not within scope of employment. Employer not liable.

Ex: Driver taking trip to Atlanta using beacon truck to visit girlfriend

Question 18

Termination of an agency by Act of Parties

Answer 18

Lapse of time, purpose achieved, occurrence of a specific event, mutual agreement, revocation or reunification

Question 19

Termination of an agency by Operation of Law

Answer 19

Death, incapacity, bankruptcy & impossibility, changed circumstances, war