A1 Business and Technical College Business Law Discussion

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Business Finance

A1 Business and Technical College

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Review Ackerman v. Sobol Family Partnership on pages 113-114 of your text.  Respond to any of the following questions for your initial post to the Discussion Board.  In your response indicate which question you are responding to by cutting and pasting the text of the question directly before your response.

  1. Do you think that the Court was correct in holding that Attorney Glenn Coe had apparent authority to settle the case with the defendants?  Why or why not?
  2. Discuss ways in which Attorney Coe and his clients could have more clearly defined the terms of their agency relationship?
  3. Why did the Plaintiff sue the defendants instead of Attorney Glenn Coe?  Would the Plaintiff potentially have a claim against Attorney Glenn Coe?  If so, what would be the legal claim against Attorney Coe?

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2/25/2018 Chapter 33 Agency Formation and Duties Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Overview • LO33-1: What is agency law? • LO33-2: How is an agency relationship created? • LO33-3: What are the different types of agency? • LO33-4: What are the different types of agency relationships? • LO33-5: What are the duties of the agent and principal? • LO33-6: What are the rights and remedies of the agent and principal? 33-2 Agency Law • Agency: Relationship between principal and agent • Agent: One authorized to act for/on behalf of principal • Principal: One who hires agent to represent him/her • Fiduciary: One with duty to act primarily for another person's benefit 33-3 1 2/25/2018 Creation of Agency Relationship • Expressed agency: Agency formed by making written/oral agreement • Power of attorney: Document giving agent authority to sign legal documents on behalf of principal • Durable power of attorney: Power of attorney intended to continue to be effective/take effect after principal incapacitated • Agency by implied authority: Agency formed by implication, through conduct of parties • Agency by estoppel: Agency formed when principal leads third party to believe that another individual serves as his/her agent (although principal had actually made no agreement with purported agent) • Agency by ratification: Agency that exists when individual misrepresents himself/herself as agent for another party, and principal accepts/ratifies unauthorized act 33-4 Agency By Ratification Requirements • Individual must misrepresent himself/herself as agent for another party • Principal accepts/ratifies unauthorized act • Principal has complete knowledge of all material facts regarding contract • Principal must ratify entirety of agent's act 33-5 Agency Relationships • Agency relationship: Fiduciary relationship (relationship of trust) in which agent acts on behalf of principal • Principal-agent relationship: Employer hires employee to enter into contracts on behalf of employer; parties have agreed that agent will have power to bind principal in contract • Employer-employee relationship: Employer hires employee to perform certain tasks; employer has right to control conduct of employees • Employer-independent contractor relationship: Employer hires persons (other than employee) to conduct some sort of task; employer has no control over details of conduct of independent contractor 33-6 2 2/25/2018 Independent Contractor or Employee? • Does worker engage in distinct occupation/independently established business? • Is work done under employer's supervision, or does specialist without supervision complete the work? • Does employer supply the tools? • What skill is required for the occupation? • What is the length of time for which worker employed? • Is worker a regular part of the employer's business? • How is worker paid? 33-7 Principal and Agent Duties • Principal's duties to agent: • • • • Compensation Reimbursement and indemnification Cooperation Safe working conditions • Agent's duties to principal: • • • • • Loyalty Notification Performance Obedience Accounting 33-8 Principal and Agent Rights and Remedies • Principal's rights and remedies against agent: • Constructive trust • Avoidance • Indemnification • Agent's rights and remedies against principal: • Tort and contract remedies • Demand for an accounting • Specific performance 33-9 3
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Attached.

Running Head: ACKERMAN V. SOBOL FAMILY PARTNERSHIP

Ackerman V. Sobol Family Partnership
Student Name:
Institution Name:

1

ACKERMAN V. SOBOL FAMILY PARTNERSHIP

2

Do you think that the Court was correct in holding that Attorney Glenn Coe had
apparent authority to settle the case with the defendants? Why or why not?
From my point of view, I have reasonable cause to believe that the court was indeed
correct and right in holding that Attorney Glenn Coe had apparent A...


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