Business Law Final Ch. 29

Respondent superior

"let the master answer" the idea that an employer is liable for a tort committed by an employee

Undisclosed principal

3rd party did not know of their existence (principal is always liable but agent is too only if principal's identity is a mystery)

Principal's liablity for torts

A principal will be liable to 3rd parties for the physical harm caused by the negligence of the agents (employees)

Agent's liability for the torts

Agents are always liable for their own torts even if the principal is also liable

Jointly and severally liable

All members of a group are liable. They can be sued as a group or any one of them can be sued individually to the full amount owed. Principal can sue the agent if principal has to pay.

Principal is bound by the acts of an agent if the agent has _____.

Authority

Agent's contract liability

Fully disclosed principal, partially disclosed/unidentified principal, undisclosed principal, unauthorized agent

Any ambiguity? Courts look at principal's _____ intent

Objective

Partially disclosed/unidentified principal

a principal is unidentified if 3rd party knows of their existence but NOT their identity (3rd party can recover from either the agent of principal)

Apparent authority

agent seems authorized, but is not. Principal is still bound by agents actions

Frolic (tort law)

an employee will not be subject to liability where an employee acts in his or her own right rather than on the employer's business

Detour (tort law)

an employer will be held liable if it is shown that the employee had gone on a detour in carrying out their duties

2 types of third party liability for contracts

disclosed principals, partially or undisclosed principals

Employee liability

employer is liable for physical harm caused by the negligence of the agent that are commiteed within the scope of their employment

Independent contractor liability

employer is liable only for negligence in hiring or supervising

Intentional torts

employer is not liable for the intentional torts of an employee unless the employee was motivated, at least in part, by the desire to serve the employer, or the conduct was reasonably forseeable (nature of work gives rise to hostilities)

Fully disclosed principal

existence and identity of principal is disclosed to 3rd party (an agent is not liable for any contracts made)

Authority

express, implied, apparent (only express and implied are actual authority)

Express authority

granted by words or conduct that cause agent to believe principal has granted permission to act

Unauthorized agent

if agent has no authority, the principal is not liable to 3rd party, but the agent is

Disclosed principals (3rd party)

only principal may enforce a contract against a 3rd party

Scope of employment

principal is only liable for torts that an employee commits within the scope of employment

Partially/undisclosed principals (3rd party)

principal or agent may enforce contract against a 3rd party, but the principal receives all the rights and benefits

Vicarious liability

the responsibility of the superior for the acts of their subordinate or in a broader sense, the responsibility of any 3rd party that had teh "right, ability, or duty to control" the activities of a violator

Implied authority

unless otherwise agreed, authority to conduct a transaction includes authority to do acts that are reasonably necessary to complete it