ACCT Ch33

fiduciary; consent;agency

"The _______ relationship that results from the manifestation of _______ by one person to another that the other shall act on his behalf and subject to his control, and consent to the other so to act" is the definition for ______.

a contract specifying the agreement between them

Arlene wanted to give her friend, Marion, power of attorney over her affairs. To do that, Arlene and Marion will need

contract or duty

Because of the nature of the agency relationship, the principal has as an available legal remedy breach of ______ remedies

conflicts of interest and protecting the principal's confidentiality

Because of their fiduciary relationship, the agent has a responsibility to act in the interest of the principal including avoiding: _______.

can put a constructive trust on the property

Bert was a real estate agent for Myra. Bert had purchased a piece of property for Myra, but when it came time to turn over the property, Bert held on to the property. In this case, Myra: _______.

Agency by Ratification

Bill announced to a group of car salesmen that he represented Harold for the purpose of buying Harold a new car. Bill negotiated with the salesmen on the price of a new car and even went so far as to sign a contract of sale. Harold had never authorized Bill to represent him in anything, but he was so happy with the deal that Bill negotiated that he accepted the contract for the car. Harold and Bill have a(n)

performance

Daryl was an employment attorney who was retained by Jean. Jean wanted to file a discrimination case against her employer. Daryl agreed that she had a case and said he would file the case for her. If Daryl fails to file the action on time, Daryl has failed in his duty of: _______.

empolyer-empolyee relationship

Dee was hired by a computer company to write security code for the various software that was being designed at the company. Dee had to create the security software to specific standards that were set by the company. The relationship between Dee and her employer can be described as a(n)

It belongs to Sara, since she was the principal and the principal owns anything the agent may possess through the agency relationship.

Donny was the employee of Sara. Sara had provided a computer tablet for Donny to use during his work activities. Donny was leaving Sara to take another job. Does the tablet belong to Donny or Sara?

the principal, notification

If an agent fails to communicate to _______ any offers from third parties or any information that the agent feels would be important to the principal, that agent has failed in their duty of ______.

to recover the amount assessed to the third party

If an agent negotiates a contract on behalf of the principal, but the contract is breached through the negligence of the agent, and if the principal is sued by the third party, then the principal can sue the agent: _______.

all applicable taxes, such as social security and unemployment taxes

If the IRS determines that an independent contractor is really an employee, the employer will be liable for

be sued by the principal for tort and contract damages

If the agent breaches his or her duties to the principal, and third parties sue the principal for damages, the agent can

constructive

If the agent illegally benefits from the agency relationship, the principal may enact a(n) ______ trust on the goods, profits, or property in question.

recover for services rendered and future damages

If there is no agency agreement or the contract is for personal services, and the principal fails to perform as agreed, the agent may: _______.

create the impression that the agent has the authority to act on behalf of the principal

In agency by estoppel, the important conduct is how the principal acts to

the principal

In an agency relationship, the agent is authorized to act for and on behalf of

principal

In an agency relationship, the person who hires the agent is known as the

torts of his employee

In general, an employer is liable for the

help guide the business with respect to local laws and customs

In order to conduct business more effectively around the world, businesses will hire agents from the host country to

gratuitous

A(n) ______ agent is one who is not paid for his or her services.

principal, terminate

A(n) ______ can _______ an agency if the agent breaches her duties.

written; durable

A(n) _______ document which expresses the principal's desire for the agent's authority not be to be affected by the principal's subsequent incapacity is known as a(n) ______ power of attorney.

Provide safe working conditions

Janelle was hired to work for the ACME construction company as a clerical worker. Janelle started getting a cough and headaches during work hours, and it was discovered that various toxic substances were present in the air. The ACME construction company has breached its duty:

accounting

Kyle was on the faculty of a major university. He had been directed by his dean to travel to a conference and interview possible candidates for various faculty positions. When Kyle returned, his dean demanded the receipts for his trip. The dean is allowed to request this information and Kyle must comply under the duty of: ________.

request that her employer obtain an auditor to perform an audit and determine whether she was, in fact, paid the power amount for her sales

Liz worked on commission at a local store. The commission that was to be given to the employees was 10% of the total sales that were made by that salesperson. Liz looked at her paycheck and noticed that the amount of money was far less than she had anticipated. Liz should __________.

An agency relationship by ratification

Peggy made a contract on behalf of Kay to purchase some sports equipment for Kay. Kay had never formally entered into an agency agreement with Peggy, but Peggy claimed she was the agent for Kay. If Peggy negotiates an order for the sports equipment, shows that agreement to Kay, and Kay signs off on the contract, then Kay and Peggy have

Attorney

Powers of ______ can be given for business and health care purposes.

a duty for the principal to the agent

Providing safe working conditions is

to perform

Raj informs his insurance agent that he wishes to purchase a comprehensive insurance policy for his house and all of the contents. His agent forgot to process the insurance. The following week, Raj's home caught on fire and suffered much damage. Raj could bring a claim against the agent for failure to exercise his duty: _______

Yes, because sally was acting within the scope of her authority and it was Joe's fault fro failing to submit the assignment

Sally was the agent of Joe, a freelance writer. It was her task to find writing assignments for Joe at various magazines and newspapers. Sally was authorized to form contracts with these outlets and on one particular occasion, she made a lucrative deal with a local newspaper. She showed Joe the contract, but Joe was so busy that he forgot to write the article. The newspaper was so angry that they sued Sally for the losses they incurred as a result of Joe's negligence. Does Joe have a duty to indemnify Sally from these losses?

Must be in writing

Simon hired Becky as his agent. Becky's responsibilities included making real estate contracts on behalf of Simon. The agency agreement between Simon and Becky

The employer

Sondra works as an employee for a computer company. She has created a new software program that will revolutionize the way computers are used in the future. Who owns the rights to the software program that Sondra has developed?

loyalty, keep confidential

The duty of ______ requires that an agent _________ any information about the principal learned during the course of the agency.

a reasonable person in the same situation would provide

The duty of performance requires the agent to act with the same skill, care, and professionalism as: _______.

loyalty

The duty that describes the agent's requirement to keep all information about the principal confidential both during the agency relationship and after is known as the duty of:

records, accounting

The duty which requires the agent to keep accurate _______ of all transactions of money and property is known as the duty of ______.

performance

The duty which requires the agent to perform her duties as required by the agency agreement is known as the duty of __

IRS

The government agency that is interested in whether a person is an employee or an independent contractor for tax purposes is the

revealed to the agent

The law typically assumes that a principal is aware of all of the information

the degree of control the employer has over the individual's work

The most important factor in deciding whether a person is an employee or an independent contractor is:

expressed

When the parties form an agency relationship through an oral or written agreement, this is known as a(n) ______ agency.

health care and business purposes

power of attorney are often given for

Specific

power of attorney gives authority only for the designated areas or purposes listed in the agreement

implied

An agency relationship that is formed through the conduct of the parties is known as an agency by ______ authority.

a lawful purpose

An agency relationship, like a contract, can only be made for

there could be a conflict of interest

An agent cannot represent both the principal and a third party because

further performance of her duties until the principal supplies appropriate accounting data

An agent who feels she is not being properly compensated, especially on commission, may demand an accounting and may withhold: ________.

Obedience

An agent who unlawfully signs a contract may have violated her duty of ______.

principal-agent relationship

When an employer hires an employee to enter into contracts on its behalf, this is known as a(n):

employer-empolyee relationship

When an employer hires an employee to perform some sort of physical service where the employee is under the control of the employer, this relationship is known as:

employees

are agents of an employer

indemnification of the agent

A principal has the duty of reimbursement and

the agent

A principal owes specific duties to

principal- agent

A sports company has hired a very famous athlete to endorse a line of sports products. The relationship between the sports company and the athlete is:

sue the principal for any breach of contract

A third party who believes that an agent is acting with actual or apparent authority may: ______.

a work for hire

According to the Copyright Act of 1976, an employer can order an employee to complete work at the request of the employer. This product is known as

will enter into a contract that the statute of frauds requires to be in writing

Agency agreements usually do not need to be in writing unless the agent:

Expressed Agency

Agency by agreement is a(n)

U.S. firms doing business globally

Agency law is especially important for

Fiduciary and/or consensual

Agency relations are ______ relationships formed by informal oral agreements or formal written contracts.

informal oral agreements or formal written contracts

Agency relationships are consensual relationships formed by:

can terminate his or her relationship with the agent and seek remedies

Agency relationships are contractual relationships and the kind of remedies that are available are ______ remedies.

contract

Agency relationships are contractual relationships and the kind of remedies that are available are ______ remedies.

Principal

Agency relationships are for the benefit of the: ______.

implied, express

Agency through ______ authority cannot conflict with any _______ authority that has been given.

tort and contract remedies and a right to demand an accounting

Agents have a right to remedies such as:

accounting

Agents who work on commission have a right to demand a(n) _______ of funds.

in writing; of attorney

An agency agreement must be _______ whenever an agent is given power _______.

attorney

An agency by agreement that gives the agent the authority to sign legal documents on behalf of the principal is known as a power of ____.

ratify the entire contract

An agency by ratification is made when a third party reasonably believes that the "agent" is acting on behalf of the principal and that the principal accepts the acts of the agent. In addition, the principal must know all of the facts regarding the contract and the principal must: _______

conduct

An agency relationship can be formed through the implied ______ of the parties.

No, because Cheryl is a minor and thus can't hire the agent.

Cheryl is sixteen years old. Can she hire Jerry, a 20-year-old, as an agent to make contracts on her behalf?

loyalty

Courts suggest that the most important duty that an agent owes to a principal is the duty of:

control, independent

Employer _______ is an important factor in deciding if an individual is a(n) ______ contractor.

yes, because Arthur is Gabriel's agent and as such, he is entitled to reimbursement.

Gabriel sent Arthur on a trip to San Diego to hunt down some antique furniture that Gabriel was going to sell. Arthur had paid for his own ticket. Is Gabriel required to pay Arthur for his expenses on the trip?

cooperation

Garth hired Marco to sell his house. If Garth refuses to let Marco show his house to interested buyers, Garth has failed in his duty of:

perform the contract as specified

If a contract exists and the principal agrees to certain conditions, but fails to perform them, the agent may seek court assistance in forcing the principal to: _______.

Agency of Ratification

If a person represents himself as an agent for an individual and that individual accepts the act of the person representing himself as the agent, this relationship is known as a(n)

tort or breach of contract

If a principal does not fulfill her duties to the agent, the agent can sue for ________ or _______.

a tort or contract action against the principal

If a principal fails to fulfill his or her duties to the agent, then that provides the basis for: _______.

Obedience

If a principal gives an agent an unlawful instructions, under the duty of _______ an agent is not required to carry out his agency duties.

uphold any agreement made by the agent

If a third party successfully demonstrates that he or she reasonably believed there was an actual agency relationship between two persons that had an apparent agency, then the principal mus

breaches, nullify

If an agent _______ an agency contract, then the principal can _______ any contracts created during the agency.

fiduciary, avoidance

If an agent breaches her _______ responsibilities, the principal can use her right of _______ to nullify any contract the agent negotiated.

a tort or contract action against the agent

If an agent fails in his or her duties to the principal, that failure provides for the basis for: _______.

fair compensation for his work

Taylor was hired by Tom to rake his leaves. When Taylor was finished, Tom thanked him and shook his hand. Since nothing was said between the two about payment, then agency theory would say Tom owes Taylor

employer-independent contractor

Ted hired three men from the Trim-a-Tree Company to take a large, dead tree down in his back yard. The men came to Ted's house with their own tools and proceeded to cut the tree down. The relationship between Ted and the men he hired is

independent contractor

The Restatement of Agency defines a person who contracts with another to do something for him, but is not controlled by him nor subject to the other's right to control with respect to his physical conduct in the performance of the undertaking, as an:

compensate, reimburse;gratuitously

The principal has a duty to ______ the agent for the services provided, unless the parties have agreed that the agent will act _______.

while working within the scope of authority on the principal's behalf

The principal has the duty to indemnify or reimburse the agent for any losses the agent incurs:

to cooperate

The principal's duty _______ means to assist the agent in the performance of their duties.

not liable for any of these things

The reason why it is so important to distinguish whether an individual is an employee or an independent contractor is that with an employee, the employer is liable to the employee for worker's compensation, workplace safety, employment discrimination and unemployment statutes while for the independent contractor, the employer is

Restatement of Agency

The source of the definition of agency is the

employer-independent contractor, principal- agent, employer- employee

There are three types of business agency relationships, including:

reasonably believed, on the basis of the principal's conduct, that the agency relationship existed

Under the concept of an apparent agency, if the principal attempts to deny that an agency relationship existed, the third party must demonstrate that she

contracts or the principal

Unless they have the authority to do so by the principal, independent contractors are not allowed to enter into

gratuitous

______ agent is one who acts without consideration.

is competent

a principal must authorize the power of attorney while she

An agency relationship

is a fiduciary relationship of trust, confidence, and good faith.

Fiduciary

is a person who has a duty to act primarily for another person's benefit.

Estoppel

suppose a principal falsely leads a third party to believe a person is his or her agent. That relationship will be called an agency by