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Business Law Q4
Question | Answer |
---|---|
when a person, called a principal, appoints another person, called an agent, to act on their behalf | agency relationship |
Can a minor be an agent? | yes |
when an agent does something on behalf of the principal to the principal's benefit without original authority | ratification |
when the principal leads the public to believe that someone is acting as their agent when they really are not | estoppel |
an employee authorized to carry out all of the principal's duties | general agent |
someone only authorized to transact certain specific acts and who has limited power | special agent |
an agent who sells merchandise for the principal and gets a commission | factor |
an agent who guarantees payment if the buyer does not pay | factor del credare |
an agent who secures a buyer for a seller or a seller for a buyer | broker |
a general agent appointed by a written authorization | attorney in fact |
the authority given to an agent when they enter into an agreement with the principal | expressed authority |
the authority given to an agent to do the things necessary in order to carry out their expressed authority | implied authority |
the authority given to an agent that is customary in the industry to do | customary authority |
the authority the an agent is believed to have because of the principal's actions or non-actions | apparent authority |
a principal has ____ degree of control over an independent contractor | very little |
duties of an agent (5) | 1. loyalty & good faith 2. obedience 3. use reasonable skill & diligence in the performance of your duties 4. accounting 5. information |
duties of a principal (4) | 1. compensation 2. reimbursement 3. indemnification 4. abide by the terms of the contract |
to hold an agent harmless if the agent incurs any damages | indemnification |
when an agent causes harm to someone, ______ is/are liable (tort) | agent & principal |
an agent is ____ liable for their negligence | always |
a principal is liable for the negligence of their agent acting within the scope of their authority | theory of respondeat superior |
if an agent enters into a contract on behalf of a principal, the ____ is liable | principal |
methods of contract termination (5) | 1. mutual agreement of the parties 2. time period agreed to in contract 3. principal revokes agreement (firing) 4. renunciation of agent (quitting) 5. operation of law |
a business owned and carried on by one person | sole proprietorship |
the association of two or more people who have combined their money, property, knowledge, and skills for the purpose of carrying on a lawful business as co-owners and for a profit | partnership |
a partnership that sells merchandise | trading partnership |
a partnership that sells services | non-trading partnership |
What type of partnership is funeral service considered? | non-trading |
governs the formation, operation & dissolution of partnerships | Uniform Partnership Act |