Busi Law Ch. 32, 33

in an agency relationship involving two parties, the agent agrees to represent or act for the principal

true

any copyrighted work created by an employee within the scope of her or his employment at the request of the employer

work for hire

a familiar example of an agent is a:

corporate officer who serves in a representative capacity for the owners of the corporation

as a noun, refers to a person having a duty created by his or her undertaking to act primarily for another's benefit in matters connected with the undertaking. as an adjective, a relationship, founded on trust and confidence

fiduciary

A relationship between two parties in which one party, the agent, agrees to represent or act for the other, the principal

agency

One who works for, and receives payment from, an employer but whose working conditions and methods are not controlled by the employer. An independent contractor is not an employee but may be an agent

Independent Contractor

Agency by _________ is created when the _________ causes a third party to reasonably believe that an agency relationship exists

estoppel, principal

With respect to their employers, employees who deal with third parties are generally deemed to be _________

agents

In which situations may the courts find an agency relationship in the absence of a formal agreement?

in family relationships and in emergency situations

in agency law, ratification occurs when:

principal, by words or by actions, affirms a contract made by a person who in fact is not an agent

true or false: Generally, the liability of the principal will depend on whether the agent was authorized to form a contract

true

When a third party reasonably believes a person has authority to act on another's behalf, even if that person does not have such authority, the situation is known as ___________

apparent authority

a public official authorized to attest to the authenticity of signatures

notary public

In most states, a rule stating that express authority given to an agent must be in writing if the contract to be made on behalf of the principal is required to be in writing. Failure to comply can make a contract voidable at the option of the principal

equal dignity rule

A written document, which is usually notarized, authorizing another to act as one's agent; can be special (permitting the agent to do specified acts only) or general (permitting the agent to transact all business for the principal)

power of attorney

power given by one party to another in clear and definite terms to act on that person's behalf

express authority

an ordinary power of attorney ends when:

the person giving the power dies or becomes incapacitated

an agent’s implied authority can be inferred by:

the position the agent occupies

Authority that is only apparent, not real. In agency law, a person may be deemed to have had the power to act as an agent for another party if the other party's manifestations to a third party led the third party to believe that an agency existed when, in fact, it did not.

apparent authority

the act of accepting and giving legal force to an obligation that previously was not enforceable

ratification

authority that is created not by an explicit oral or written agreement but by implication. in agency law, implied authority of the agent can be conferred by custom, inferred from the position the agent occupies, or implied by virtue of being reasonably necessary to carry out express authority

implied authority

true or false: apparent authority usually comes into existence through a principal’s pattern of conduct over time

true

A court can apply the doctrine of _________ when a principal has given a third party reason to believe that an agent has authority to act

agency by estroppel

before a principal ratifies an unauthorized contract, the third-party can:

revoke the offer without liability

an agent’s authority to act for a principal:

may be actual or apparent

an agent will have emergency powers:

to protect the principal's property and rights when the agent is unable to communicate with the principal

If an agent is on a _________, the principal will be liable, but if the agent is on a ________, the principal will not be liable.

detour, frolic

what are the classifications of a principal?

disclosed, partially disclosed, and undisclosed

A principal is always responsible for an agent's _________ made within the scope of the agent's authority.

misrepresentations

legal responsibility placed on one person for the acts of another

vicarious liability

a doctrine under which a principal or an employer is held liable for the wrongful acts committed by agents or employees while acting within the course and scope of their agency or employment

respondeat superior

true or false: A principal who authorizes an agent to commit a tort may be liable to persons or property injured, because the act is considered to be that of the principal.

true

true or false: Liability for contracts formed by an agent depends on how the principal is classified and on whether the actions of the agent were authorized or unauthorized.

true

A principal whose identity is unknown by a third party, but the third party knows that the agent is or may be acting for a principal at the time the agent and the third party form a contract

partially disclosed principal

a principal who identity is known to a third party at the time the agent makes a contract with the third party

disclosed principal

undisclosed principal

A principal whose identity is unknown by a third person, and the third person has no knowledge that the agent is acting for a principal at the time the agent and the third person form a contract.

true or false: If the third party knows at the time the contract is made that the agent does not have authority, the principal nonetheless remains liable

false

true or false: if an agent has no authority but nevertheless contracts with a third party, the principal generally cannot be held liable on the contract

true

true or false: If an agent has authority to sign a contract on behalf of a disclosed principal, the third party may hold either the principal or the agent responsible to perform.

false