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