week 7 - employment law Flashcards
(38 cards)
what is meant by sales of goods by sample?
when a business buys goods having looked at the sample it is an implied condition that the bulk will correspond + the goods will be free from any defect that is not reasonably apparent on reasonable examination of the sample.
what is an example of a case where someone was liable for the sale of goods by sample?
Godley v perry (1960)
Claimant (young boy) brought a catapult from a newsagent, it broke in use causing the claimant to lose sight in 1 eye. He tested the sample catapult + found no defects.
Decision: newsagent was in breach of satisfactory quality as it was not of satisfactory quality or fit for purpose. The wholesaler was also liable for sales of goods by sample as the defect was not apparent after reasonable exam of the sample.
If goods do not match the sample, match the description, fix their specific purpose or are not of satisfactory quality, what can the consumer do?
- reject the goods for a full refund (within 30 days of receipt).
- require trader to repair or replace goods. if the problem is not fixed or if there is a delay or there is inconvenience to the consumer then the consumer can reject the goods + get a refund or keep it and get a discount on it.
what is meant by agency?
a legal relationship between an agent + a principal.
what is the purpose of the agent?
an agent has the authority or capacity to create legal relations between a principal + a third party.
what are the factors of the creation of an agency relationship?
- agreement (express or implied).
- necessity.
- estoppel.
- ratification.
what is an express agreement?
the principal appoints the agent + gives them actual authority to act on their behalf, this will be by written contract.
what is an implied agreement?
where it is assumed that the principal has given the agent authority to act on their behalf e.g. employer-employee relationship.
what is meant by necessity?
when an emergency arises which requires a person to protect the interests of another, in order to do this the person must take action.
what is an example of a case where someone had become an agent by necessity?
Great northern railway v swaffield
Defendant sent a horse by rail + when it arrived nobody was there to collect or had any details of the owner. The railway company (claimant) arranged for the horse to be fed + stabled, defendant refused to reimburse the railway company.
Decision: claimant had acted in the best interests of the defendant therefore had become an agent by necessity + the defendant was bound to pay for the costs.
what is meant by agency by estoppel?
where the principal’s words or actions give the impression that they consent to the person acting as an agent.
what is an example of a case where an agency by estoppel was created?
Freeman + lockyer v buckhurst park (1964)
Defendant company had 4 directors, 1 acted as if they were the MD despite never being appointed as such. Other directors did nothing to stop this + the company refused to pay for the contract that the unauthorised director had entered into.
Decision: the company was liable as they gave no indication that the director did not have the authority, therefore an agency by estoppel was created.
what is meant by ratification?
where an agency relationship is made retrospectively (considering something in relation to the past), no agency relationship at the time of the agreement.
what are the duties of an agent?
- to perform agreed tasks + follow instructions.
- to exercise care + skills.
- to not make a secret profit.
- not to take a bribe.
- to maintain confidentiality.
- to personally perform tasks.
- to account.
- to avoid a conflict of interest.
what is meant by the duty of an agent to perform agreed tasks + follow instructions?
agents must follow principal’s instructions even if not in their best interest. unpaid agents do not have duty to act but if they do they must act in accordance with the instructions.
what is meant by the duty to exercise care + skill?
an agent with professional or trade skill is expected to meet the standards of a person in that profession/trade.
what is meant by the duty to not make a secret profit?
agents must not secure a personal financial advantage, unless done with the knowledge + authority of the principal.
what is a secret profit?
profit gained from info which the agent has acquired from acting on behalf of the principal.
what is an example of a case where there was a breach of duty to exercise care + skill?
Keppel v wheeler (1927)
Estate agent had obtained an offer from a purchaser to buy his principal’s property, the agent received another offer from a different person at another price, the agent failed to inform the principal of the higher offer + house was sold at the lower price.
Decision: agent had committed a breach of duty + was liable in damages to principle.
what are the different types of rights of an agent?
- right to remuneration.
- right to claim indemnity.
- right to a lien over a principal’s property.
what is meant by a right to remuneration?
in a contractual agreement, usual for payment to be stated as wages, commission or both. if and when payment is due depends on the agreement between parties.
what is meant by the right to claim indemnity?
a contractual obligation where one party promises to compensate another party for specific losses or damages in carrying out their duties as an agent.
what is meant by a right to a lien over the principal’s property?
an agent has the right to retain possession of the principal’s property until a debt owed to them is paid, acting as a security for the debt.
what is a lien?
a right to retain possession of another’s property, where that possession already lawfully exists.
