Flashcards in Deck 32 Deck (20)
Fair Debt Collection Practices Act
Prohibits abuses by collection agencies; can't contact the debtor if the debtor has an attorney
For ratification to occur, the agent must have acted without:
Notification to third parties is not required when:
Actually authority of an agency relationship terminates as an operation of law
If a principal violates a duty owed the agent, the agent cannot demand
Specific performance from the principal
Rules for capacity for agents and principals
Agent does not need to have capacity but a principal does
Power of attorney
Written authorization of agency (Agent has power to act on behalf of the principal); normally limited to specific transactions
Agency-principal relationship termination
Either party has the power to terminate the relationship at any time. They don't necessarily have the right though. other party can sue if its a wrongful termination
A principal cannot terminate an agency coupled with:
Interest (no power or right to terminate)
The principal is liable to a third party when the agent has:
1) a grant of actual authority; 2) apparent authority or estoppel; or 3) ratification
Agent has the power (but not the right) to bind the principal; agent is given apparent authority by the principal; can't give yourself apparent authority
Continuity of service (manager, partner, president)
Someone engaged to perform one or more transactions not involving a continuity of service
How do you destroy apparent authority?
Give notice to third parties
What kind of principal can ratify?
Undisclosed party only liable to third party if agent has what kind of authority?
When there is a disclosed principal, is the agent liable?
Third party didn't realize the agent was even working for someone (agent is liable on the contract)
No underpayment of tax penalty will be imposed if the total tax for the year is:
Less than $500
Action by a stockholder in the name of the corporation to recover damages or to seek some other remedy on behalf of the corporation