Business Law with UCC Applications,13e

Agency Law

Chapter 22

McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

22-2

Learning Objectives

1. Describe the nature of the agency relationship.

2. Outline the doctrine of vicarious liability.

3. Distinguish among the different types of principals.

4. Distinguish among the different types of agents.

5. Distinguish among express, implied, and apparent authority.

22-3

Learning Objectives

6. Outline the duties of an agent to the principal.

7. Clarify the duties that a principal has in relation to an agent.

8. Name the ways that an agency relationship can be terminated.

9. Identify who is entitled to a notice that an agency has ended.

10. Explain electronic agency.

22-4

Agency Law

• The Nature of Agency Law– Agency and Other Relationships – The Question of Liability

22-5

Agency Law

• Agency and Other Relationships– Principal-Agent Relationship– Employer–Employee Relationship– Master–Servant Relationship– Proprietor–Independent Contractor

Relationship

22-6

Agency Law

• The Question of Liability– Contract Liability

– Tort Liability

– Criminal Liability

– Statutory Liability

– The Economic Reality Test

– Sovereign Immunity and the Federal Government

– Sovereign Immunity, Respondeat Superior , and the States

22-7

Agency Law

• Principles of Agency Law– Types of Principals and Agents – Liability of Principals and Agents – Scope of an Agent’s Authority

22-8

Agency Law

• Scope of an Agent’s Authority– Express, Implied, and Apparent Authority– Implied authority– Apparent authority– Agency by Ratification– Authority by Statute– Appointment of Subagents– Exceptions to the Delegation of Authority

22-9

Agency Law

• Duties in Agency Law– Agent’s Obligations to a Principal – The Principal’s Obligations to the Agent

22-10

Agency Law

• Agent’s Obligations to a Principal– Obedience and Loyalty– Judgment, Prudence, Skill, and the Duty to

Account– Personal Service and Communication– Remedies Available to the Principal

22-11

Agency Law

• The Principal’s Obligations to the Agent– Compensation– Reimbursement– Indemnification– Cooperation with the Agent– Remedies Available to the Agent

22-12

Agency Law

• A Final View of Agency Law– Termination by the Acts of the Parties – Termination by Operation of Law – Agency Coupled with an Interest – Notice of Termination to Third Parties – Cyber-Agency Statutes

22-13

Agency Law

• Termination by the Acts of the Parties– Fulfillment of Purpose or Mutual Agreement– Revocation or Renunciation

22-14

Agency Law

• Termination by Operation of Law– Death or Insanity– Durable Power of Attorney– Bankruptcy– Impossibility of Performance

22-15

Agency Law

• Agency Coupled with an Interest– Notice of Termination to Third Parties