An agency relationship arises when one person (the agent) acts for the benefit of and under the direction of another (the principal).A principal is bound on a contract entered into on his behalf by an agent if the agent had authority to act for the principal. Such authority may be either actual or apparent. Actual authority may be expressed or implied. Even if no actual authority has been given, the principal may be held liable because he either appeared to give authority to the agent (apparent authority) or ratified the act of the agent (or one posing as an agent).

If you operate a business that employs even one person outside your own family, you must comply with a myriad of statutes. These statutes impose duties on employers that supplement and greatly increase the duties imposed by the common law of agency. Many of the statutes require you to keep records and often to make reports to both state and federal agencies. In addition, recent changes in the common law doctrine of employment at will may impose new duties on you as an employer.

STEP ONE:

ASSIGNED READING:Read Chapters 23, 24 and 25 of Law for Business (Barnes, 2012)

STEP TWO:

CHAPTER 23:

1) Describe the duties an agent owes a principal.

2) Describe the duties a principal owes an agent.

3) Explain how an agency relationship may be terminated or otherwise ended.

CHAPTER 24:

4) Define authority. Describe the types of authority an agent may possess.

5) Explain how an unauthorized act by an agent may be ratified by a principal.Describe the effect of such ratification.

6) Describe circumstances under which an agent is personally liable for a contract negotiated with a third party.

7) Explain how a principal may liable for the torts or crimes of the agent.

CHAPTER 25:

8) Define an unfair labor practice and give examples from the employer and employee perspective.

9) Tell what groups are protected by Title VII and what the two main theories are under which suit can be brought.

10) Explain the concept of employment at will and how it interacts with whistleblowing.