Podcast
Questions and Answers
Which of the following persons is an agent?
Which of the following persons is an agent?
- Person 1
- Person 2
- Person 3
- All of the above (correct)
Which of the following is not required of an agency relationship?
Which of the following is not required of an agency relationship?
- Legality
- Capacity
- Consideration (correct)
- Consent
The equal dignities rule relative to agency law applies to an agent:
The equal dignities rule relative to agency law applies to an agent:
- Written agreements
- Oral agreements
- Both written and oral agreements (correct)
- None of the above
Which statement is correct regarding Mohammad's case?
Which statement is correct regarding Mohammad's case?
How can an agency relationship be created?
How can an agency relationship be created?
Has Ron violated his fiduciary duty to Kansas Sunshine?
Has Ron violated his fiduciary duty to Kansas Sunshine?
In the case of John and Tim, which statement is correct?
In the case of John and Tim, which statement is correct?
What is the correct statement for Nikki's situation?
What is the correct statement for Nikki's situation?
The doctrine of estoppel would most often apply in situations of:
The doctrine of estoppel would most often apply in situations of:
What must Cameron do regarding Jim's libel claim?
What must Cameron do regarding Jim's libel claim?
What behavior is prohibited for an agent?
What behavior is prohibited for an agent?
What can Lena do regarding the business?
What can Lena do regarding the business?
An agency will be terminated in all but which one of the following situations?
An agency will be terminated in all but which one of the following situations?
Can Janet keep the bracelet given by the customer?
Can Janet keep the bracelet given by the customer?
Who can Judy hold liable for her injury?
Who can Judy hold liable for her injury?
What is the status of the contract finalized by Jenna?
What is the status of the contract finalized by Jenna?
What is Jim's liability regarding the stolen car?
What is Jim's liability regarding the stolen car?
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Study Notes
Agency Basics
- An agent can be any person acting on behalf of another, encompassing various roles.
- Consideration is not a necessary element for establishing an agency relationship.
- The equal dignities rule applies to an agent regarding the formality of their authority.
Confidentiality and Fiduciary Duty
- Agents have a duty to maintain confidentiality about their principal's sensitive information.
- An agent may breach fiduciary duty by competing against their principal or prioritizing personal interests.
Agency Creation and Termination
- Agency relationships can be formed through the actions and conduct of the parties involved.
- Various scenarios can lead to the termination of an agency relationship, with bankruptcy by a travel agent being an exception.
Legal Accountability
- Agents and their principals can have liability in instances such as negligence or defamation linked to their professional roles.
- An indemnification obligation exists for agents when facing claims arising from their work events, even if they acted appropriately.
Personal Conduct and Gifts
- Agents should maintain conduct that does not reflect poorly on their principal, regardless of whether they are on duty or off.
- Agents can accept gifts from clients only if disclosed and consented to by the principal.
Agent's Authority and Transactions
- Permission is required for an agent to engage in transactions that are personally beneficial, such as purchasing property.
- Contracts finalized after the principal's death are void due to the termination of agency authority.
Liability in Accidents
- In cases of negligence, only the agent (independent contractor) may be held liable, not the associated company.
Special Scenarios
- Gratuitous agents have limited liability for losses incurred under gross negligence.
- Agents must ensure they do not surpass their given authority or act against the principal's interests.
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