Premium Essay

Agency Relationship

In:

Submitted By sackhc03
Words 408
Pages 2
The agency relationship in this problem is important to distinguish the principal-agent relationship from that of employer-employee or employer–independent contractor. Principal can be held liable by Rite Supply, Theo, and Verity Industries depends on the relationship created by Principal in its contracts with Quality Construction, Skye, and Uma. The relationship might be one of principal-agents, the parties agree that the agent will act on behalf of the principal, and any proper contracts made by an agent with a third person are binding on the principal. Contracts made with third parties by employees or independent contractors who are not also agents are not binding and are not enforceable against the employer. Quality Construction is employed as an independent contractor. It is neither an agent for Principal nor an employee because Quality Construction has no authority to make contracts on behalf of Principal, so Quality is not an agent. Also, Principal has no control over the details of Quality’s conduct, so Quality is not an employee. Therefore, only Quality, not Principal, can be liable to Rite Supply for nonperformance of contract. Skye was hired strictly as an employee and has no authority to contract with third persons because Skye has no authorization to hire a consultant on Principal’s behalf. However, Theo must look to Skye, not to Principal, for payment for services. Uma is both an employee and an agent she was hired specifically to solicit orders for Principal’s products from third persons. With that said she has authority to so contract, Principal is bound by her contract.

In this situation, Owen’s Pets Store should form A Limited Liability Company (LLC). A Limited Liability Company is more flexible than a corporation and it is well-suited for companies with a single owner. A Limited Liability Company is a flexible form of business enterprise that

Similar Documents

Premium Essay

Agency Fidcuiary Relationship

...ISSUES Rock star, Herman Phillips, hired retired ABC executive Wilson Bills to “find him work in television.” No written documentation existed of this work relationship, but at meetings with industry people, Phillips said to “work with Bills, he looks after me.” Bills negotiated and signed a six month acting contract with Valley Television Productions on Phillips’s behalf; however, Phillips quit the show two weeks into employment. In a subsequent meeting, Phillips told Bills that he would pay his traveling expenses if Bills could find him another acting gig. The next night in a room at the Bay Hotel, Bills and Phillips were smoking marijuana; Bills’s lit marijuana cigarette caused a fire and burned down the hotel. Phillips was sued by Valley Television Productions for breach of contract and by the Bay Hotel for Bills’s negligence of starting the fire. Bills was also sued by the Valley Productions for breach of contract and filed for unemployment compensation after Phillips terminated their business relationship. RULES A fiduciary relationship results when one person (the principal) manifests her consent that another person (the agent) will act on her behalf and subject to her control, and the agent manifests his consent to so act. An agency by agreement relationship is based on an express or implied agreement that the agent will act for the principal. As per the Equal Dignity Rule, if a contract being executed by an agent on the principal’s behalf is written...

Words: 803 - Pages: 4

Premium Essay

Agency Relationships Paper

...Agency Relationships LAW/575 February 23, 2015 Shannon Allen Agency Relationships The relationship established between two parties for lawful purposes, in which one party, named the principal, requests the other party or agent to represent him is called Agency. Agency relationships create fiduciary duties between the principal and the agent (Kubasek et al., 2012). In this paper, Team B will discuss the different types of Agency and the legal consideration surrounding each of them. Expressed Agency Expressed Agency is known as an agency by agreement; this agreement can be oral or written. Expressed agency is an agency that is commonly used. This particular agency gives the agent ability to contract on behalf of the principal. Power of attorney is a prime example of expressed agency. “A power of attorney establishes an agency by agreement that gives an agent authority to sign legal documents on behalf of the principal” (Kubasek et al., 2012, p.729). There is another form of power of attorney which is durable power of attorney. Durable power of attorney allows the principal to take all decisions until he/she becomes incapacitated and then the agent will step in and act on behalf of the principal. Legal considerations. Expressed agency must have either an oral or written agreement. If there is neither then there is no expressed agency. When it comes to power of attorney “an agency relation exists only if there has been a manifestation by the principal to the...

Words: 751 - Pages: 4

Premium Essay

Migrating to a Regiment Customer Relationship Management System in a Cloud Computing Atmosphere at Acme Travel Agency

...Abstract: Acme is a travel agency, which specializes in selling cruise holidays. Although the organization started out as a bricks and mortar business, today 60% of the business is obtained online, and with 40% of the trade coming through the traditional routes. The organization has been highly successful, and business is growing, but the company is facing some challenges. Although service levels are high, increasing levels of competition have impacted on the organization, and the repeat purchase rate was reduced from 50% to 19%. Furthermore, the cost of new customer acquisition has increased significantly, to $78 per customer. The organization wishes to increase repeat sales in order to support better profit levels, and reduce the challenges and costs associated with new customer acquisition. The implementation of a customer relationship management program (CRM) has been advocated as a way of covering, analyzing, and facilitating utilizing of information about customers to improve the customer relationships, and marketing knowledge. The expected duration of implementation is approximately four months; and if it is able to increase repeat purchases by only 10%, it would increase the revenues for the company in excess of $4 million in the first year. Brief Company Background; Acme is a local travel agency firm. Established in 1978, the firm started out selling only through the shop, attracting new customers with the use of local advertising, including newspapers...

Words: 5025 - Pages: 21

Free Essay

State Initiative Project

...State Agency Initiative Project Clinton Alford MGT/522 – Public Administration: Institutions and Processes August 11, 2014 Instructor Eddie Gordon State Agency Initiative Project The focus of this project will center on South Carolina Initiative called “Strengthening Families South Carolina.” In this project, the subject to discuss will be to recognize where this initiative began at the state level and how it was supported. Most important, the subject to discuss is how the initiative influences local government and communities and recognize how this initiative was implemented at the agency using the personnel structure. The subject to discuss in this project is also to deliberate if privatization is a better alternative to carry out this initiative. Finally, I will present an organizational chart of the South Carolina Department of Social Services that displays the relationship between the state government’s structure with the local government’s structure, along with each component’s function and how privatization influences both state and local structures. Identify where this initiative originated at the state level and how it was supported The South Carolina State Initiative “Strengthening Families South Carolina” is conducted by the Children’s Trust of South Carolina (SCDSS, 2012). Most important, this initiative is a foundation created by the Center for the Study of Social Policy over the last ten years to stop child neglect and abuse (SCDSS, 2012)...

Words: 986 - Pages: 4

Free Essay

Eva's Shelter Essay

... * Directed to the website when asked for the mission of Kennedy House Youth Shelter; “To enable youth to grow as individuals to contribute as members of the community. This is achieved in our residential and community based programs by providing customized support and building trusting relationships” (Kennedy House Youth Services, 2009). * Main target is homeless youth between the ages of 16-25 one day less a day; they can come in daily from their 16th birthday and stay up until their 25th birthday (Rosenthal, 2015). * This service is self-directed according to Rosenthal (2015) residents have the option to choose whether they come to the shelter unless there is a ban. This service uses a harm reduction approach; staff consider client-staff relationship a key factor when working with youth. * According to James Rosenthal community is seen as an active partnership with immediate community members (Rosenthal, 2015). Kennedy House works towards addressing programs in the community with a zero tolerance for youth who break the policies of the agency. * When speaking with Rosenthal he explained that Kennedy House has a strong relationship with other existing community agency friends such as ACE, public health, and Toronto Community Housing. * The few disadvantages of this program according to Rosenthal (2015) is housing where we see the long waiting list, transportation for youth who are homeless because they can’t afford fair to get from point A to point B...

Words: 1051 - Pages: 5

Free Essay

Empowerment in Human Services

...Commonalities and Successes Jacqueline Friederich BSHS/425 April 6, 2015 Joanie Blamer Commonalities and Successes Human service organizations are unique from organizations in the general business world. In this paper will explicate the essential focal point of all human service programs. It will as well identify the trends of human services, and identifying qualities of human service agency's associate with and how the office contributes to success. Central Focus of Human Service Programs Human service agencies work together, sharing the same goal in each program to enhance the client’s well-being (Lewis & Packard, 2012). In order to assist clients to improve their lives as human service professionals work together in different program settings. The common denominators are essential in the delivery of services. In order to enhance the client’s lives, each organization provides specific services but maintain the same goal. According to Harvey (1998), “having a very clear sense of purpose, direction, mission, or vision and a focus on its accomplishments is necessary to achieve excellence in Human Service Organization.” The human service mission is the needs of the client’s first and the commitment to improving the quality of life with the client and those in the community. Trends In Human Services Throughout the years, trends have changed the service delivery on the specific time. The different factors that change the service deliveries are political...

Words: 691 - Pages: 3

Free Essay

Workplace Law

...Work is no longer a domestic relationship and we also saw that master as employer have great control their servant/employees in their work performance. Control becomes an important key to determine if a person is an employee as of today or to show if there is an employment relationship. There are differences between employees and independent contractors, an independent contractor is a person who agrees to deliver a certain outcome whereas an employee, who must obey instructions from his or her employer in the discharge of his duties, so independent contractor act independently from the principal that hires him.The independent contractor can delegate others to complete the job as the principal is not concerned with how the contractor does it, so long the outcome is achieved. Using control test from the common law, we can determine that Amanda is an employee of the company as the company control her working hours. We are concerned with the nature of the control and the degree of the control – Federal Commissioner of Taxation V J Walter Thompson (Aust) Pty Ltd (1994) Case. In Walter Thompson case, the company hired artists to perform radio plays for advertisements. The High court of Australia found that the producer controlled the actors during rehearsals and performance and held that there is an employment relationship here. Thus , we can use this case to prove that Amanda is an employee of the company. We can use the multi factor test to determine whether Amanda is the...

Words: 1163 - Pages: 5

Free Essay

Bussiness

...v. Coombs | | Bah Dar | 1/8/2015 | Terminating an Agency depends on different factors. This paper discusses weather an agency relationship for property control is terminable inside a family | Francis Gagnon and his wife had two properties. They both were in old ages, so when their daughter Joan offered them to be their power of attorney, Francis accepted. Later Francis changed his mind and without informing his daughter revoked the power of attorney. After wife’s death, he decided to sell one of the properties and move to live with his son. Joan, acted against his father‘s wish. She established a trust and without considering the transaction, she initiated to move the house into the trust. Did Joan have the right to move the property into her trust? Haman (2004) mentions that the best way to revoke power of attorney is a written note. Joan had power of attorney. She did not receive a written note. As long as Francis had not issued a written statement or had not informed her, she could claim her authority on the property and she had the right to do that. The court also accepted her claim. If her father had not had any document to show that Joan was no longer his power of attorney, Joan could claim that she was not aware of her father‘s decision. Does the property belong to the trust or to Mr. Gagnon? The property belongs to Mr. Gagnon. There are many options for terminating an agency relationship. Beside that Joan, as an agent, had fiduciary duty to his father...

Words: 383 - Pages: 2

Premium Essay

Medical Malpractice and Informed Consent

...Medical Malpractice and Informed Consent In order to prove that Dr. Green was negligent in her treatment of Mr. Parker the plaintiff needed to prove that Dr. Green did not perform her duty, breached her duty, caused the injures, and that she suffered damaged. In this case, Dr. Green did not exercise reasonable care under the circumstances by not following the manufactures stated dosing instructions and prescribing the incorrect dose in both oral and written instructions. Dr. Green violated her breach of duty by failing to meet the applicable standard of care. It would be hard to argue that others physicians would have prescribed the incorrect dose in their standard treatment of care. It is my opinion that plaintiff would succeed in proving that Dr. Green did not perform her duty and breached her duty. While the statement of facts presented does not state the amount that is needed to overdose on pentamite or what effects of an incorrect dosage will have on an individual taking pentamite, the plaintiff could argue that taking the prescribed dosage of 10 times the stated dose by the manufacturer for two weeks caused the heart attack that ended Mr. Parker’s life. Dr. Green could argue that the dizzy spells were a sign of a medical condition that no matter what treatment she gave, the heart attack that ended Mr. Parker’s life could have happened and she did not cause it. In order to estimate the success of this claim I would need more information about pentamite and need...

Words: 1064 - Pages: 5

Free Essay

Any Topic

...REPUBLIC OF THE PHILIPPINES DEP ARTMENT OF BUDGET AND MANAGEMENT MALACANANG, MANILA I BUDGET CIRCULAR TO ~ No. 2014 - 3 December 2,2014 Heads of Departments, Bureaus, Offices, and Agencies of the National Government, Including State Universities and (SUCs), Government-Owned or -Controlled Colleges Corporations (GOCCS)i Heads of Local Government Units (LGUS)i and All Others Concerned Guidelines on the Grant of the Productivity Enhancement Incentive (PEl) to Government Employees for Fiscal Year SUBJECT (FY) 2014 1.0 Background 1.1 Item (4)(h)(ii) of the Senate and House of Representatives Joint Resolution (JR) No.4, series of 20091 provides that incentives for government personnel shall inciude rewards for exceeding agency financial and operational performance targets, and to motivate employee efforts toward higher productivity. Item (4)(h)(ii)(bb) thereof enumerates the PEl as among the incentives to be authorized by the President of the Philippines for personnel in the Executive Branch and in LGUs. Executive Order (EO) No. 802 was issued by President Benigno S. Aquino III on July 20, 2012, to motivate higher performance and greater accountability in the public sector and ensure the accomplishment of commitments and targets under the 5 Key Result Areas laid down in EO No. 43 and in the Philippine Development Plan 2011-2016. Section 1 of EO No. 80 directed the adoption of the Performance-Based Incentive System (PBIS) for government personnel. Said System...

Words: 1690 - Pages: 7

Free Essay

Poor Laws

...When thinking critically about Benjamin Franklin’s view on the poor laws, it became apparent that his views were connected to the views of a conservative. Benjamin Franklin believed that “the best way of doing good to the poor is not making them easy in poverty, but leading or driving them out of it” (Williams, H.,1994). Analyzing Benjamin’s meaning behind this statement is thought provoking; from a conservative point of view this statement can be perceived as individuals needing to take care of them selfs without any help from social services or government agencies. Benjamin Franklin believed that all individuals should be solely responsible for themselves and their economic welfare even if they were to become disabled or elderly, the belief was that they should have prepared for the unknown (Williams, H., 1994). Franklin took the stance that the poor laws made individuals dependent on others to provide for them, which then would lead to increased poverty and reliance on government supports. Franklin argued that the less you provide for individuals forces the individual to do for themselves, promoting independence, self worth and riches. Although Franklin believed that getting assistance form private charities could be harmful; he also believed that if the government was able to delegate how the programs were managed then this would prove to be 1 more effective (Williams, H., g82). The view that the government would be able to police the programs to ensure that individuals...

Words: 351 - Pages: 2

Free Essay

Help

...of Hawaii’s most profound agencies known in the State of Hawaii that is correlated with human services is “Helping Hands Hawaii.” Although there are many agencies that have different approaches, human services rely on agencies that are most cost-efficient yet effective. Interoperability plays a major role in the future of human services. It is the “ability of two or more systems to exchange information and to use the information that has been exchanged” (Schoech, 2010). The three possible models for approaching interoperability in the human services are Loosely Linked Network Model, Network Model, and Top-Down Model. Human services emphasize in the importance of interoperability, as agencies collaborate with the same identified need to help others. Helping Hands Helping Hands Hawai’i manages numerous programs that benefit the people of Hawaii; this includes Behavioral Health Programs, Ready to Learn, Emergency Assistance Program and many more. Their mission is to support the community by improving the quality of people’s lives through the delivery of goods and services to those who are in need. For families and individuals, Helping Hands Hawaii is a new quality of life that overcomes the obstacles that block the way of meeting their full potential. This non-profit organization revenue from State agencies, grants from the local and national government and the Aloha United Ways. The annual donors that contribute to the agency helps the agency meet the growing needs of...

Words: 869 - Pages: 4

Free Essay

Going Mobile

...actually a topic that I've been discussing with an insurance agency owner. This agency deals with personal lines as well as commercial lines of insurance and also focuses on health insurance and life insurance. Equipping insurance agents with iPads/iPhones that have multiple apps on them will allow the agent to do a better job in the field. They would be able to access their current client information, write new business, and make changes to existing business/policies (such as add a vehicle or drop a vehicle from a policy); they could accomplish all of this without being in their office. In fact, they could make these changes in a client's home or at a coffee shop with or without their client being present. SIDE NOTE: we also discussed an app for their clients to use that would allow them to access their insurance information, such as ID cards, when premiums are due, the ability to pay the premiums, etc. (this app would be branded around this particular insurance agency). How would it improve the business process? Having the ability to handle things for their clients as they come up would allow the agency and the agents to be a lot more efficient. It could also play a major role in reducing E & O (errors and omissions) claims, this situation occurs if an agent forgets to do something such as add a vehicle to the policy and then that said vehicle is involved in an accident. In this case, the agent and/or agency would be involved in a lawsuit. And how would the company...

Words: 333 - Pages: 2

Free Essay

Markets and Non Markets

...Market and Nonmarket Environments Market environment includes those interactions (which involve voluntary economic transactions and the exchange of property) between firms, suppliers and customers that are governed by Markets and Contracts. Nonmarket environment is composed of the social, political and legal arrangements that structure interactions (between the firm and individuals, interest groups, govt. entities, and the public which are intermediated not by markets but by public and private institutions) outside of, but in conjunction with, markets and contracts. Public institutions differ from markets because of characteristics such as majority rule, due process, broad enfranchisement, collective action, and publicness. Activities in the non market environment are Voluntary when, firm cooperates with govt. officials or an environment group and are Involuntary in the case of, govt. regulation or a boycott of a firm’s product led by an activist group. Nonmarket issues high on firms agenda include : 1. Environmental Protection 2. Health & Safety 3. Regulation & Deregulation, 4. Intellectual Property Protection 5. Human Rights 6. International Trade Policy 7. Regulation & Anti-trust 8. Activist Pressures 9. Media Coverage of Business 10. Corporate Social Responsibility & 11. Ethics Management & Managers is both responsible for formulating and implementing nonmarket as well as market strategies. Market Environment...

Words: 1536 - Pages: 7

Premium Essay

1. What Is Your Opinion of Nasa Today? Is It a Vital Agency to This Nation? Is It Worth Spending Approximately 1/2 of a Penny on the Dollar (for Every Tax Dollar)?

...Most government agencies are wasteful. But NASA is a vital agency to this nation because it does push our country to develop technology. A lot of good science comes out of NASA. The sad thing is that NASA is run by politicians who cannot or do not understand the agencies mission or its value to the economy. NASA's budget, although large compared to the average income, is very small compared to the national budget. It is one of the few agencies of the US government that actually put more money into the economy that it takes out. I think it is a worthwhile endeavor to explore the things around us. One positive thing about human curiosity is the survival value it brings. According to News.com “A new private space industry could create ten thousand new jobs across the country in five years.” NASA and the aerospace industry provide thousands of jobs across the country they do more than just space exploration they also monitor our environment from space, procure satellites for other agencies and develop the next generation of aircraft technologies. I think President Obama’s reasons are not directly related to the current state of the economy. He has made clear that his priorities are the re-distribution of wealth away from those that are producing it to supply the needs of those that are not producing it. If the economy was booming, President Obama would not reinstate the programs he has canceled. But he will earn the political favor of those that he temporarily pretends to help...

Words: 350 - Pages: 2