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Restatement (Third) of Agency §§ 2.01-02 (2006).
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1In the agency context, what is the test for the existence of actual authority?
In the agency context, what is the test for the existence of actual authority?2Must a principal expressly provide authority to an agent for the agent to have actual authority?
Must a principal expressly provide authority to an agent for the agent to have actual authority?3What is implied authority?
What is implied authority?4What is inherent authority?
What is inherent authority?5In the agency context, what are the possible methods for terminating an agent’s actual authority?
In the agency context, what are the possible methods for terminating an agent’s actual authority?6In the agency context, is it possible for a principal to be unable to revoke an agent’s actual authority?
In the agency context, is it possible for a principal to be unable to revoke an agent’s actual authority?7A business owner told one of her workers that one of the owner’s commercial storage facilities had been experiencing petty theft. The owner decided...
A business owner told one of her workers that one of the owner’s commercial storage facilities had been experiencing petty theft. The owner decided to have a new alarm system installed. The owner instructed her worker to purchase and arrange for the installation of a new alarm system for approximately $5,000. The worker made the purchase and arranged for the alarm company to install the system. Commercial businesses in that county needed a permit to operate an alarm. The worker then filed the necessary paperwork with the county office to order the permit. The owner received the permit and a bill for $500 from the county the following month.Did the worker have the legal authority to bind the owner to the $500 permit payment?8In the agency context, what is the test for the existence of apparent authority?
In the agency context, what is the test for the existence of apparent authority?9In the agency context, what is the test for whether an agent’s apparent authority has been terminated?
In the agency context, what is the test for whether an agent’s apparent authority has been terminated?10A business owner had given a worker the title of head of purchasing. The worker’s business cards had the worker’s full name and title. For three ye...
A business owner had given a worker the title of head of purchasing. The worker’s business cards had the worker’s full name and title. For three years, the worker had been the owner’s agent, periodically ordering raw materials from a local vendor on the business owner’s behalf. The owner had always paid promptly for the delivered materials. One day, the owner then told the worker that the worker could no longer place any orders larger than $1,000. The owner did not inform any third parties about the worker’s new purchasing limitations. The next day, the worker received a call from the local vendor and ordered $5,000 of raw materials. When the owner received the bill, she was furious and refused to pay it. Is the owner liable for the $5,000 order?11In agency, what is ratification?
In agency, what is ratification?12May a principal who ratified his agent’s unauthorized actions subsequently avoid the effect of ratification under some circumstances?
May a principal who ratified his agent’s unauthorized actions subsequently avoid the effect of ratification under some circumstances?13What is a disclosed principal?
What is a disclosed principal?14What is an undisclosed principal?
What is an undisclosed principal?15What is a partially disclosed principal?
What is a partially disclosed principal?16Under agency law, may a principal and the principal’s agent be liable for the agent’s contracts and torts?
Under agency law, may a principal and the principal’s agent be liable for the agent’s contracts and torts?17In the agency context, can apparent authority exist if the principal is undisclosed?
In the agency context, can apparent authority exist if the principal is undisclosed?18If a third party has notice that an agent is acting for a principal but does not know the principal’s identity (i.e., if the principal is partially...
If a third party has notice that an agent is acting for a principal but does not know the principal’s identity (i.e., if the principal is partially disclosed), will the unidentified principal be bound by actions within the agent’s authority?19A woman owned a small farm and supplied produce to local grocery stores. The woman was also an agent for a national produce distributor. The nation...
A woman owned a small farm and supplied produce to local grocery stores. The woman was also an agent for a national produce distributor. The national produce distributor instructed the woman to contact a local grocery store and offer to supply pumpkins for the upcoming holiday season. The woman contacted the store but falsely represented that she was not acting on behalf of the national produce distributor. The store representative assumed that the woman was offering local pumpkins and placed a large order. During the discussion with the woman, the store representative repeatedly told the woman that the store sold only local produce. Once the pumpkins were delivered, the store representative learned that the pumpkins had not been grown locally. The store representative sought to void contract for the pumpkin order. May the store void the contract for the pumpkin order?20A charitable organization instructed its agent to contact a local event planner to organize an upcoming charity dinner. The agent was instructed no...
A charitable organization instructed its agent to contact a local event planner to organize an upcoming charity dinner. The agent was instructed not to disclose the charity’s identity. The agent informed the event planner that she was acting on behalf of a principal but could not divulge the principal’s identity. The event planner agreed to the arrangement and entered into a contract. The contract provided that event planner was to organize the dinner, and in exchange, the unidentified principal would pay the event planner for her time and give the agent a commission. However, the event planner later learned that she had a conflict in her work schedule and backed out of the event, breaching the contract. The charity was forced to cancel the dinner, and the agent never got any commission. The agent sued for the planner’s breach.Was the agent a party to this contract?21In addition to the elements of the particular tort claim, what two additional elements must a third party establish to recover against a principal ...
In addition to the elements of the particular tort claim, what two additional elements must a third party establish to recover against a principal for a tort committed by an agent with apparent authority?22What is the test for determining whether a principal has ratified an unauthorized action?
What is the test for determining whether a principal has ratified an unauthorized action?23Can a principal ratify actions taken by an individual who was not acting or purporting to act as the principal’s agent?
Can a principal ratify actions taken by an individual who was not acting or purporting to act as the principal’s agent?24May a principal be held directly liable for an agent’s tortious conduct?
May a principal be held directly liable for an agent’s tortious conduct?25A business owner instructed a worker, the owner’s agent, to meet with a local vendor to discuss placing a large order for supplies. The worker met ...
A business owner instructed a worker, the owner’s agent, to meet with a local vendor to discuss placing a large order for supplies. The worker met with the vendor and the vendor made the worker a favorable offer that was valid for only 60 minutes. The worker was unable to contact the business owner during that time and decided to accept the offer on the owner’s behalf. Later that day, the worker met with the owner and told the owner about the deal. After learning the material facts of the deal, the owner did not dispute the legitimacy of the contract. The owner also began using the supplies once they were delivered under the contract. Has the owner ratified the contract?