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Agency Law

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Business Law I
MGMT235-1401A-05

January 15, 2014

For this discussion board post we are to discuss the topics of Agency Law and the different principals and ideas that go along with it. There are three types of principles that exist; they are disclosed, undisclosed, and partially disclosed principals. A disclosed principle refers to when there is a 3rd party involved. The person/people are not hidden by the company to the person or persons that they are working with. For example, Let’s say you have a bill and you have not paid it, the company that you had the bill will originally may turn your account over to another collection agency and they would in turn contact you and let you know that your account has been turned over to their company to collect the debt on behalf of the original company.
When it comes to an undisclosed principle, it’s just that, not disclosed, no information is given on that agent. They still are working either on their own behalf or through a company and do not want their information public. For example, if I was under an undisclosed principle I would not go into a meeting and say, “I am here on behalf of Yellowstone National Park”. This information would not be given out.
For a partially disclosed principle, at the time of the deal, the person may know that the other person he is dealing with is portraying themselves as an Agent but does not know who the main source or principal is. For example, if I am speaking on behalf of a national park and I am trying to build a new park, if the person that I was trying to buy the land to build the new park on knew that I already worked for the larger national park they would try to increase the price tremendously.
Duties that an agent owes to a principal are: Loyalty- their duty is to act only for the good of their principal; Obedience- the agents’ duty to do what the principal instructs them to do long as its legal and clearly known; Accounting- the agent has to keep up with and make account for all of the principals properties and money that is received or/and paid unless they have already discussed not to beforehand; Performance - An agent agrees to do their best work at all times for the principal; Notification- It is a must that the agent notify the principal of everything that concerns attention to the An agent is required to notify the principal of all matters that come to the agent's attention concerning the principal.
In my opinion, I do not think it is fair to have an undisclosed principal. It is very misleading thinking that you are dealing with one person or a company and later to find out that you and your information was being shared and passed around the whole time. I would not be pleased; in fact I was not pleased when it happened to me. I was dealing with a furniture company and I was thinking that I was paying a bill to them, but later learned that it was under another company’s name.
References

"Rights, Duties, and Liabilities between Principal and Agent." Agency Rights Duties and Liabilities between Principal and Agent Comments. N.p., n.d. Web. 15 Jan. 2014. Retrieved from http://agency.uslegal.com/rights-duties-and-liabilities-between-principal-and-agent/
Cheeseman, H. R. (2013). Business law: Legal environment, online commerce, business ethics, and international issues, eighth edition. (8 Ed.). Prentice Hall.

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