Agency and Labor Law The Principal’s Liability on the Contract Assignment Crash agrees to have Steve represent him in various transactions as an agent to secure him performance contracts and endorsement deals. Crash writes a letter to Bob that Steve is his agent. Unbeknownst to Bob, Crash specifically instructed Steve to only make endorsement deals with Bob. However, Steve signs a contract for Crash to attend a birthday party performance. In all other cases, Steve has express authority to enter into any contract on behalf of Crash. So Steve makes a contract with Jimmy for a performance at a bar. Jimmy knows Steve is an agent, but he doesn’t know who Steve is an agent for. Finally, Steve makes an endorsement contract with Fred. Fred has no idea whether Steve is representing anyone. Is Crash liable for any of these contracts? Is Steve liable for any of these contracts? The requirements below must be met for your paper to be accepted and graded:  NO PLAGARISM!!!!!!!!!!! Write between 500 – 750 words (approximately 2 – 3 pages) using Microsoft Word. Attempt APA style, see example below. Use font size 12 and 1” margins. Include cover page and reference page. At least 60% of your paper must be original content/writing. No more than 40% of your content/information may come from references. Use at least two references from outside the course material, preferably from EBSCOhost.  Text book, lectures, and other materials in the course may be used, but are not counted toward the two reference requirement. NOTES Business Law II Agency This lecture will cover the law concerning agency. In a principal-agent relationship, the parties have agreed that the agent will act on behalf and instead of the principal in doing business with third persons. This has some profound consequences, as this will make the principal liable for contracts entered into by the agent and for misdeeds of the agent in many situations. Nonetheless, principal-agent relationships are very common. For example, the employer-employee relationship is one example of such a relationship as is the employer-independent contractor relationship. The significant distinction between these two relationships is the amount of control the principal exercises over the agent in the course of the agent’s duties. And although these two types of principal-agent relationship seem similar, the consequences stemming from each classification are very significant. These consequences include the principal’s liability for the torts of the agent and the principal’s legal obligations toward the agent. For example, the doctrine of respondeat superior will hold the principal liable for torts committed by the agent in most situations. However, it does not apply in the independent contractor situation. These relationships can be formed in various ways. However, all these relationships require an affirmative indication that the agent agrees to act for the principal and the principal agrees to have the agent .

1. Agency and Labor Law
The Principal’s Liability on the Contract
Assignment
Crash agrees to have Steve represent him in various transactions
as an agent to secure him performance contracts and
endorsement deals.
Crash writes a letter to Bob that Steve is his agent.
Unbeknownst to Bob, Crash specifically instructed Steve to
only make endorsement deals with Bob. However, Steve signs a
contract for Crash to attend a birthday party performance.
In all other cases, Steve has express authority to enter into any
contract on behalf of Crash. So Steve makes a contract with
Jimmy for a performance at a bar. Jimmy knows Steve is an
agent, but he doesn’t know who Steve is an agent for.
Finally, Steve makes an endorsement contract with Fred.
Fred has no idea whether Steve is representing anyone.
Is Crash liable for any of these contracts?
Is Steve liable for any of these contracts?
The requirements below must be met for your paper to be
accepted and graded:
NO PLAGARISM!!!!!!!!!!!
Write between 500 – 750 words (approximately 2 – 3 pages)
using Microsoft Word.
Attempt APA style, see example below.

2. Use font size 12 and 1” margins.
Include cover page and reference page.
At least 60% of your paper must be original content/writing.
No more than 40% of your content/information may come from
references.
Use at least two references from outside the course material,
preferably from EBSCOhost. Text book, lectures, and other
materials in the course may be used, but are not counted toward
the two reference requirement.
NOTES
Business Law II
Agency
This lecture will cover the law concerning agency.
In a principal-agent relationship, the parties have agreed that
the agent will act on behalf and instead of the principal in doing
business with third persons. This has some profound
consequences, as this will make the principal liable for
contracts entered into by the agent and for misdeeds of the
agent in many situations. Nonetheless, principal-agent
relationships are very common. For example, the employer-
employee relationship is one example of such a relationship as
is the employer-independent contractor relationship. The
significant distinction between these two relationships is the
amount of control the principal exercises over the agent in the
course of the agent’s duties. And although these two types of
principal-agent relationship seem similar, the consequences
stemming from each classification are very significant. These
consequences include the principal’s liability for the torts of the
agent and the principal’s legal obligations toward the agent. For
example, the doctrine of respondeat superior will hold the
principal liable for torts committed by the agent in most
situations. However, it does not apply in the independent
contractor situation.

3. These relationships can be formed in various ways. However,
all these relationships require an affirmative indication that the
agent agrees to act for the principal and the principal agrees to
have the agent so act. Agency can be created by agreement.
These contracts need not be written (unless the Statue of Frauds
applies). Agency can also be created by ratification. This occurs
when a principal affirms a contract made by a person not
currently an agent (or an agent acting outside of his or her
authority). Agency can be created by estoppel in the situation
when a principal causes a third person to believe that another is
the principal’s agent, and the third person deals with the other.
Finally, agency my be created by operation of law in some
situations.
The creation of this relationship creates various duties and
rights on both sides. The agent's duties are:
1. Performance- the agent must use ordinary care as expected of
a reasonable person under the circumstances.
2. Notification- the agent must notify the principal of issues
concerning the subject matter of the agency.
3. Loyalty- the agent must act solely for the benefit of the
principal. This means an agent cannot represent two principals
in the same transaction without disclosing the conflict and
obtaining consent.
4. Obedience- the agent must follow the principal’s instructions.
5. Accounting- the agent must account for all property and
money received and paid out on behalf of the principal.
The principal's duties are:
1. Compensation- The principal must pay an agent for services

4. rendered and do so in a timely manner. The amount will be
either agreed upon, the customary value, or whatever is
reasonable.
2. Reimbursement and Indemnification- The principal must
reimburse an agent for sums disbursed at the principal’s request
or for necessary expenses in the agent’s performance of his or
her duties. The principal must also indemnify the agent.
3. Cooperation- The principal must cooperate and assist the
agent.
The agent’s authority is not absolute. The agent will have
express authority given by the principal either orally or in
writing. The agent will have the implied authority conferred by
custom, inferred from the agent’s position or implied by virtue
of being reasonably necessary to carry out express authority.
Additionally, there are doctrines that hold the principal liable
even when the agent does not have real authority. Apparent
authority exists when the principal causes a third party to
reasonably believe that an agent has authority when the agent
does not. If the third party reasonably relies on those assurances
and is harmed, the principal is estopped from denying the
existence of the agency relationship. Finally, the principal may
elect to ratify an agent’s actions made without authority. The
agent’s authority does not last indefinitely. It may expire after
the occurrence of a specified event, after a lapse of time, by
mutual agreement or by termination of one party. However, it is
important that the principal convey to third parties that the
agency relationship has been terminated.
Employment Law
This lecture will cover various employment laws.
It is critical to understand the doctrine of “at will” employment
as a baseline for this distinction. Under this doctrine, employers
can fire workers for good, bad, or no reasons, and employees

5. are likewise empowered to quit for any reason. This doctrine
can be abrogated by implied or express contract between the
employee and employer. And although there are some public
policy exceptions, including one for whistleblowers, this
doctrine gives employees and employers a lot of latitude to
determine the terms of conditions of employment.
However, the 20th century has seen a number of laws that limit
the reasons that an employer can fire (or take an adverse action
against an employee) as well as providing minimum standards
for employee safety and privacy. The Fair Labor Standards Act
is one of the most significant labor laws. This law establishes a
minimum wage, limits (or prohibits) child labor, and provides
regulation of overtime work.
Law also protect an employee’s reasonable expectations of
privacy will be taken into account in monitoring cases (though
notice of monitoring will make such expectations unreasonable).
The Electronic Communications Privacy Act prohibits the
interception of employee communications on machines not
provided by employers. And lie-detector and drug tests are
similarly regulated.
The safety of employees has been an area of especial growth.
State worker’s compensation laws establish procedures for
compensating most workers injured on the job. Oftentimes,
these laws also greatly limit the employee’s recourse against an
employer for any employer negligence that may have
contributed to the employee’s injuries. And Congress created
the Occupational And Safety Administration (OSHA). This
agency ensures that workplaces meet certain safety standards,
and the agency requires employers to keep records of
compliance.
The greatest laws restricting at-will employment relate to the
various discrimination statutes that were passed in the wake of

6. the Civil Rights Movement. Chief among these is Title VII of
the Civil Rights Act of 1964. Broadly, this act prohibits
employment discrimination on the basis of race, color, religion,
national origin or gender (many of the protections to this act
were offered to the disabled and elderly by the Age
Discrimination in Employment Act of 1967 and the Americans
with Disabilities Act of 1990). Acts are monitored by the Equal
Employment Opportunity Commission. These laws prohibit both
intentional and unintentional discrimination. In the case of
disparate-treatment unintentional cases, for example, the
plaintiff must establish a prima facie case. The elements of this
are: 1) the employee is a member of a protected class; 2) he or
she applied and was qualified for the job in question; 3) he or
she was rejected by the employer; 4) the employer continued to
seek applicants for the position with a person not in a protected
class. And these statutes also prohibit sexual harassment.
Finally, an employee is protected from retaliation for helping
another make a claim of discrimination.
Finally, there have been numerous laws regulating unions and
the relationship between unions and employers. Several laws
have been passed in this area. In the earlier part of the 20th
century, these laws were mostly centered around protecting
unions by establishing classes of protected activity, such as
strikes and boycotts by the Norris-LaGuardia Act. The National
Labor Relations Act enshrined employees rights to organize and
collectively bargain as well as creating the National Labor
Relations Board to regulate unions. These laws also set up
procedures for getting unions recognized to bargain collectively
and various procedures governing collective bargaining, union
elections, and strikes. The laws also define and prohibit various
employer (refusing to negotiate in good faith) and union unfair
labor practices (discriminating against workers not in a union).