tailieunhanh - Lecture Business law: The ethical, global, and e-commerce environment (13/e): Chapter 35 - Mallor, Barnes, Bowers, Langvardt

Chapter 35 provides knowledge of the agency relationship. When you finish this chapter, you should: know how an agency relationship is created and terminated, distinguish employees from nonemployee agents, recognize when an agent risks breaching a fiduciary duty. | Agency Law The Agency Relationship Third-Party Relations of the Principal and the Agent 8 McGraw-Hill/Irwin Business Law, 13/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved. The Agency Relationship P A E T R H C 35 “I’ve got an ego and all that, but I know I need help. So I go and hire the very best people.” H. Ross Perot, EDS founder, Inc. (Jan. 1989) Learning Objectives Creation of an agency relationship Agency concepts, definitions, and types Duties of agent to principal Duties of principal to agent Termination of an agency 35 - Agency is a two-party relationship in which one party (agent) is authorized to act on behalf of, and under control of, another party (principal) Anybody may be an agent or principal, but the agreement is voidable by minors and the mentally incapacitated All employees are agents, but not all agents are employees Overview 35 - In effect, a principal delegates duties to the agent. However, certain duties are non-delegable Example: If your | Agency Law The Agency Relationship Third-Party Relations of the Principal and the Agent 8 McGraw-Hill/Irwin Business Law, 13/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved. The Agency Relationship P A E T R H C 35 “I’ve got an ego and all that, but I know I need help. So I go and hire the very best people.” H. Ross Perot, EDS founder, Inc. (Jan. 1989) Learning Objectives Creation of an agency relationship Agency concepts, definitions, and types Duties of agent to principal Duties of principal to agent Termination of an agency 35 - Agency is a two-party relationship in which one party (agent) is authorized to act on behalf of, and under control of, another party (principal) Anybody may be an agent or principal, but the agreement is voidable by minors and the mentally incapacitated All employees are agents, but not all agents are employees Overview 35 - In effect, a principal delegates duties to the agent. However, certain duties are non-delegable Example: If your college hired a hip-hop artist, the artist couldn’t delegate duties to a Valkyrie opera singer as his agent Actual authority for an agent’s acts is: Express – created by principal’s written or oral words to agent about agent’s duties Implied – principal’s acts and surrounding circumstances give rise to reasonable belief about scope of agent’s duties Apparent authority arises when principal’s conduct leads third party to believe an agent with no actual authority is authorized to act Agency Authority 35 - Example of express authority: “I want to hire you as my realtor to sell my house.” Example of implied authority: a person hired as general manager in a restaurant will have broad authority to run the business while a person hired as a waiter will have limited authority Apparent authority arises when a principal’s conduct leads a third party to believe that an agent (who lacks actual authority) is authorized to act a certain way and the third party reasonably relies on the appearance