L201 FINAL LAW GROW STUDY GUIDE WITH COMPLETE
SOLUTION!!
Agent owes Principal...
answers: -Duty of Loyalty
-Duty of Obedience
-Duty of Care
Principal owes Agent...
answers: Compensation and indemnification - pay for expenses in carrying out
orders, e.g. travel expenses
Consequences for fiduciary duty
answers: -Sued for cost of principal
-Fired
Termination of Agency Relationship
answers: -Lapse of time
-Purpose achieved
-Termination by principal or agent
-By operation of law (breached a duty, declared bankruptcy)
Tort Liability
answers: Varies depending on whether the agent is an employee or an independent
contractor
,Tort Liability (Employee)
answers: P/Employer is responsible for torts
Tort Liability (Independent Contractor)
answers: P/Employer is NOT responsible for torts
Employee Characteristics
answers: -More control over work
-Same line of business as employer
-Employed on permanent, indefinite basis
-Paid every 2 weeks
-Typical in line of work for employer to be in control
-Employer supplies tools for work
-High degree of skill not required
Independent Contractor Characteristics
answers: -No fed laws on benefits
-No taxes (SS, disability, unemployment, etc)
-Less control over work
-Different line of business
-Hired to do a task, definite period of time
-Paid at completion of task
, -Employer not typically in control (construction)
-Must provide own tools for work
-High degree of skill required
Example of Employee
answers: Corporate Recruiter
-Paid twice a month = E
-Reports to manager who approves every hire = E
-Works from home, own computer/phone = EC
-Employer says I.C., 1099 = Not a factor
--More E's than EC's
Employees
answers: Principal is liable for both intentional and negligent conduct of
employees while acting in the scope of employment
Frolic and Detour
answers: Activity occurring outside of employment:
-Principal is liable if an employee is simply on a detour from company business
-Only when an employee is on a frolic will the principal not be liable
Detour (liable?)
answers: Principal liable
SOLUTION!!
Agent owes Principal...
answers: -Duty of Loyalty
-Duty of Obedience
-Duty of Care
Principal owes Agent...
answers: Compensation and indemnification - pay for expenses in carrying out
orders, e.g. travel expenses
Consequences for fiduciary duty
answers: -Sued for cost of principal
-Fired
Termination of Agency Relationship
answers: -Lapse of time
-Purpose achieved
-Termination by principal or agent
-By operation of law (breached a duty, declared bankruptcy)
Tort Liability
answers: Varies depending on whether the agent is an employee or an independent
contractor
,Tort Liability (Employee)
answers: P/Employer is responsible for torts
Tort Liability (Independent Contractor)
answers: P/Employer is NOT responsible for torts
Employee Characteristics
answers: -More control over work
-Same line of business as employer
-Employed on permanent, indefinite basis
-Paid every 2 weeks
-Typical in line of work for employer to be in control
-Employer supplies tools for work
-High degree of skill not required
Independent Contractor Characteristics
answers: -No fed laws on benefits
-No taxes (SS, disability, unemployment, etc)
-Less control over work
-Different line of business
-Hired to do a task, definite period of time
-Paid at completion of task
, -Employer not typically in control (construction)
-Must provide own tools for work
-High degree of skill required
Example of Employee
answers: Corporate Recruiter
-Paid twice a month = E
-Reports to manager who approves every hire = E
-Works from home, own computer/phone = EC
-Employer says I.C., 1099 = Not a factor
--More E's than EC's
Employees
answers: Principal is liable for both intentional and negligent conduct of
employees while acting in the scope of employment
Frolic and Detour
answers: Activity occurring outside of employment:
-Principal is liable if an employee is simply on a detour from company business
-Only when an employee is on a frolic will the principal not be liable
Detour (liable?)
answers: Principal liable
