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Chapter 5 Agency.ppt
Chapter Five Agency Law Loyalty Do not compete with the principal Avoid existing or potential conflict of interest Not further the interests of any third party in his or her dealings Confidential information Exercises 1. What is express authority and implied authority? 2. What are the duties of the agent to the principal? 3. What is agency coupled with interest? 4. Charles gave Halston authority to sell several household items for her for $175 in a garage sale. Halston sold the items for $200 and kept the additional %25 for herself. May Charles recover the $25? 5. What are the five types of authorities in the American Law? Is there difference any between it and that of German agency law? 6. Bruce is hired as a booking agent for a rock group, the Crash, as the group’s agent. Bruce can negotiate contracts for the rock group to appear at concerts. Are the contracts binding and thus legally enforceable against the group? 7. Ben is off-duty but wearing the uniform of his employer’s. A member of the public hands some money to Ben, who then steals it? Who bears the loss? 8. Johnson accompanies Charles to call on a customer, Stevenson, the owner of the General Seed Store. Johnson is not employed by Charles at this time. Charles says to Stevenson that he wishes he had two more assistants “just like Johnson”. This gives Stevenson reason to believe that Johnson is an agent for Charles. Stevenson then places seed orders with Johnson. If Charles does not correct the impression that Johnson is an agent, will Charles be bound to fill the orders? 9. Elizabeth owns Green Hills. She needs some immediate cash, so she enters into an agreement with Tom Smith. The Agreement provides that Smith will lend her $15,000, and she agrees to grant Smith a one-half interest in Green Hills and “the exclusive right to sell” it with the loan to be repaid out of the sale’s proceeds. Smith is Elizabeth’s agent. Is Smith’s agency coupled with an interest? * * Principal Agent Third Party Employer E
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