situation determine the authority of the agent to do business on behalf of the principal. Unless the agency contract says otherwise, courts have generally allowed agents to: 1. Receive payments of money due the principal 2. Enter into contracts for incidentals 3. Employ or discharge employees 4. Buy equipment and supplies In the following case, the court indicates the extent to which implied au- thority will be granted to an agent. C H A P T E R 1 6 ! Agency Law 419 C A S E 16-2 Penthouse International v. Barnes United States Court of Appeals 792 F.2d 943 (9th Cir. 1986) Priscilla Barnes was a hostess at a club in Hollywood,California, when she was approached by a freelance photographer (Dunas) who sold nude photographs to Penthouse magazine. Dunas was an independent contrac- tor. He asked Barnes to pose nude. She agreed but did not want her actual name used. Dunas agreed to her terms, and Barnes signed a “Release, Authorization and Agreement Form” that gave Penthouse the right to “republish photo- graphic pictures or portraits.” Dunas added the term AKA (also known as) on the contract to indicate that the pho- tographs would not be published under her actual name but under a pseudonym. Penthouse did so in 1976. Later, Barnes became a well-known television broad- caster for a station in Los Angeles. When Penthouse in- formed her, in 1983, that it wished to republish her nude photograph, she threatened to sue, claiming that Dunas had implied agency to write the term AKA and that Pent- house was thus bound by his actions and representations. Penthouse requested a declaratory judgment from the federal district court allowing it to republish a nude photo of the defendant. The district court found for Barnes and issued an injunction against Penthouse. Pent- house appealed. Judge Boochever Under California law, questions regarding the existence of agency are questions of fact that we review for clear error. California Civil Code Section 2316 defines actual authority as “such as a principal intentionally confers upon the agent, or intentionally, or by want of ordinary care, allows the agent to believe himself to possess.” At issue is whether Dunas contracted to act on behalf of Penthouse. Penthouse instructed photographers “to get a signed model release and not to alter the release in any way, without our permission.” However, Penthouse carried Dunas’s name on its masthead, gave him blank Penthouse contracts, may have given him business cards, and had him present contracts to models. Thus, although the record conflicts as to whether Dunas was an actual agent of Penthouse, on review, we cannot find that the district court clearly erred in finding Dunas to be a Pent- house agent. Having found that the district court did not err in char- acterizing Dunas as an agent, we next turn to whether Dunas was acting within the scope of his authority by mod- ifying the contract. Barnes does not contend nor is there evidence that Dunas possessed expre.

1. situation determine the authority of the agent to do business on
behalf of the
principal.
Unless the agency contract says otherwise, courts have
generally allowed
agents to:
1. Receive payments of money due the principal
2. Enter into contracts for incidentals
3. Employ or discharge employees
4. Buy equipment and supplies
In the following case, the court indicates the extent to which
implied au-
thority will be granted to an agent.
C H A P T E R 1 6 ! Agency Law 419
C A S E 16-2
Penthouse International v. Barnes
United States Court of Appeals
792 F.2d 943 (9th Cir. 1986)
Priscilla Barnes was a hostess at a club in
Hollywood,California, when she was approached by a freelance
photographer (Dunas) who sold nude photographs to
Penthouse magazine. Dunas was an independent contrac-
tor. He asked Barnes to pose nude. She agreed but did not
want her actual name used. Dunas agreed to her terms, and
Barnes signed a “Release, Authorization and Agreement
Form” that gave Penthouse the right to “republish photo-

2. graphic pictures or portraits.” Dunas added the term AKA
(also known as) on the contract to indicate that the pho-
tographs would not be published under her actual name
but under a pseudonym. Penthouse did so in 1976.
Later, Barnes became a well-known television broad-
caster for a station in Los Angeles. When Penthouse in-
formed her, in 1983, that it wished to republish her nude
photograph, she threatened to sue, claiming that Dunas
had implied agency to write the term AKA and that Pent-
house was thus bound by his actions and representations.
Penthouse requested a declaratory judgment from the
federal district court allowing it to republish a nude
photo of the defendant. The district court found for
Barnes and issued an injunction against Penthouse. Pent-
house appealed.
Judge Boochever
Under California law, questions regarding the existence of
agency are questions of fact that we review for clear error.
California Civil Code Section 2316 defines actual authority
as “such as a principal intentionally confers upon the
agent, or intentionally, or by want of ordinary care, allows
the agent to believe himself to possess.” At issue is whether
Dunas contracted to act on behalf of Penthouse.
Penthouse instructed photographers “to get a signed
model release and not to alter the release in any way,
without our permission.” However, Penthouse carried
Dunas’s name on its masthead, gave him blank Penthouse
contracts, may have given him business cards, and had
him present contracts to models. Thus, although the
record conflicts as to whether Dunas was an actual agent
of Penthouse, on review, we cannot find that the district
court clearly erred in finding Dunas to be a Pent-
house agent.

3. Having found that the district court did not err in char-
acterizing Dunas as an agent, we next turn to whether
Dunas was acting within the scope of his authority by mod-
ifying the contract. Barnes does not contend nor is there
evidence that Dunas possessed express actual authority to
modify the contract. Dunas, however, had implied actual
authority. Implied actual authority requires that (1) Dunas
believe he was authorized to modify the contract based on
Penthouse conduct known to him or (2) such a belief was
reasonable.
Circumstantial evidence exists that Dunas placed “AKA”
on other contracts with no objection from Penthouse. In
June 1974, a year and a half before Barnes posed, contracts
prepared by Dunas had “AKA”on them. Further, Penthouse
internal memoranda reflect an understanding among Pent-
house employees that “AKA” added to a contract meant
that Penthouse was to associate a fictitious name with a
woman’s photograph. The evidence thus indicates that
Dunas reasonably believed he was authorized to add “AKA”
and modify the contract to require that only a fictitious
name be used.
Affirmed in favor of Defendant, Barnes.
J. Arredondo
420 P A R T T W O ! Private Law and the Legal Environment
of Business
AGENCY THROUGH RATIFICATION BY PRINCIPAL
Agency by ratification occurs when a person misrepresents
himself or herself

4. as an agent and the principal accepts (ratifies) the unauthorized
act. If the prin-
cipal accepts the results of the agent’s act, then the principal is
bound, just as if
he or she had authorized the individual to act as an agent. Two
conditions are
necessary for the ratification to be effective: (1) the principal
must have full
knowledge of the agent’s action and (2) the existence of the
principal must be
clear to the third party at the time of the agent’s unauthorized
act. For example,
Max Black tells his friend Mary Ann Jones, a realtor, that if she
ever finds any-
one who is ready, willing, and able to sell a certain kind of
computer franchise
store, he will buy it. Jones finds such a store, cannot reach
Black, and has never
been his agent, but she enters into the agreement with the
franchisor anyway
and signs the contract “Mary Ann Jones, agent for Max Black.”
Jones is not
Black’s agent. If Black, however, decides to honor the contract,
he will have rat-
ified an agency relationship, and Jones will most likely be due a
commission.
AGENCY BY ESTOPPEL OR APPARENT AUTHORITY
If a third person is led by a principal to believe that a certain
individual is the
principal’s agent, then there appears to be authority for the
agent to act and the
principal is estopped from denying that the individual is an
agent. It is the writ-
ing, words, or acts, or some combination thereof, of the
principal that create the

5. agency by estoppel, or apparent authority for the agent to act;
the third party
relies on the principal’s conduct.
Duties of Agents and Principals
PRINCIPAL’S DUTIES TO AGENT
Through an evolution of case law and scholarly writing, it is
now generally
recognized that a principal (employer) owes four duties to an
agent (employee):
(1) a duty of compensation, (2) a duty of reimbursement and
indemnification,
agency by ratification
Agency relationship in which
an unauthorized agent
commits the principal to an
agreement and the principal
later accepts the unauthorized
agreement, thus ratifying the
agency relationship.
estoppel A legal bar to either
alleging or denying a fact
because of one’s own previous
words or actions to the
contrary.
agency by estoppel
(apparent authority) An
agency relationship in which
the principal is estopped from
denying that someone is the
principal’s agent after leading
a third party to believe that the
person is an agent.

6. C R I T I C A L T H I N K I N G A B O U T T H E L AW
One of the primary purposes of a judge’s opinion is to explain
the court’s reasoning in a particular case. A judge’s opin-
ion is not arbitrary, in the sense that a judge must give due
consideration to relevant facts and rules of law for any le-
gal issue. From a judge’s opinion, we are, therefore, able to
know not only a judge’s conclusion but also why the judge
ruled for one party over another. These opinions provide the
court’s rationale in a particular case, which may later be
used as precedent for subsequent cases that contain similar fact
patterns. In Case 16-2, the judge provided several rea-
sons to support the conclusion. The next two questions relate to
the judge’s reasoning in Case 16-2.
1. What reasons did the judge provide for ruling in favor of the
defendant?
Clue: To ensure that you have found a reason, ask yourself
whether what you have listed answers the question:
“Why did the court rule for the defendant?”
2. What aspects of the court’s reasoning were particularly
strong or weak? (Remember that just because reasons
are given does not mean that these reasons are necessarily
strong.)
Clue: Reverse the roles in this case and assume that you are the
plaintiff’s lawyer. With which parts of the
judge’s opinion would you still disagree based on the court’s
reasoning? Would there be parts of the judge’s
reasoning with which, even though you were the opposing party,
you would agree?

7. J. Arredondo
C H A P T E R 1 6 ! Agency Law 421
(3) a duty of cooperation, and (4) a duty to provide safe
working conditions.
These duties are either part of a written contract or implied by
law.
Duty of Compensation. In the absence of a written agreement, it
is implied
that a principal will compensate the agent for services rendered,
either when
services are contracted for or when they are completed. If the
parties cannot
agree on the amount, courts will usually indicate that the
compensation should
be calculated on the basis of what is reasonable or customary.
For example,
lawyers and real estate brokers are sometimes paid on a
contingency fee (com-
mission) basis.
Duty of Reimbursement and Indemnification. An indemnity is
an obliga-
tion on the part of an individual (principal) to make good (or
reimburse) another
person (agent) against any losses incurred when the latter is
acting on behalf of
the former. All necessary expenses can be recouped by the
agent, but the agent
is not entitled to expenses arising out of tortious conduct (e.g.,
negligence) or
unlawful activities (e.g., bribes paid to suppliers).

8. Duty of Cooperation. The principal must do nothing to interfere
with the rea-
sonable conduct of an agent as agreed upon in an express or
implied contract.
For example, if a franchisor (principal) agrees with a franchisee
(agent) that the
latter has an exclusive right to sell a specific item within a
geographic territory,
the franchisor cannot legally compete with the franchisee by
setting up another
franchisee within that territory. If the franchisor does establish
a competitive
franchisee, the first franchisee can sue for breach of contract,
asking either for
lost profit, court costs, and attorney’s fees or for specific
performance.
Duty to Provide Safe Working Conditions. The principal has a
duty to its
agent to provide safe working conditions. Federal legislation
such as the Occu-
pational Safety and Health Act (discussed in Chapter 18) set
standards designed
to create a safe working environment for employees. Employers
who repeatedly
violate those standards may be fined or imprisoned or both.
AGENT’S DUTIES TO PRINCIPAL
Just as a principal has legal duties to an agent, the agent has
legal obligations to-
ward the principal: loyalty, obedience, accounting, and
performance.
Duty of Loyalty. Courts have often indicated that the agent’s
most important ob-
ligation is fiduciary. The fiduciary obligation includes loyalty

9. to the principal—that
is, acting on behalf of one principal only to avoid conflicts of
interest, communi-
cating all material information to the principal, and refraining
from acting in a
manner that is adverse to the principal’s interest.
contingency fee Agent’s
compensation that consists of
a percentage of the amount
the agent secured for the
principal in a business
transaction.
indemnity Obligation of the
principal to reimburse the
agent for any losses the agent
incurs while acting on the
principal’s behalf.
C A S E 16-3
Cousins v. Realty Ventures, Inc.
Court of Appeals of Louisiana, Fifth Circuit
844 So. 2d 860 (2003)
Don Cousins acted as the representative/agent for
EagleVentures, Inc., to find a real estate investment for the
corporation to purchase. To do so, Cousins engaged the
services of Leo Hodgins, a real estate agent/broker and
owner of Realty Ventures, Inc. (RVI).
In March of 1991, Leo Hodgins learned that 3330 Lake
Villa Drive, an 8,000-square-foot office building in Metairie,
Louisiana, owned by Westinghouse Credit Corporation,
was being sold for $125,000. In June 1991, Leo Hodgins
first brought 3330 Lake Villa Drive to Cousins’s attention.

10. · Program the Choose to be healthy, at Lankenau Medical
Center at 10-11:40 a.m
· Health Educator: Maureen Krouse
· The school attend to the program is Philadelphia Monkssori
(PMSC) for first and second grade with their teachers
· Strategies she used change behavior, health education, health
communication
· Activities games, lecture, active management, give story, and
asking questions.
· The theories used Behavioral capability, Reinforcement, and
Collective efficacy
· Outcome knowledge, attitude, and skills
· I asked her How many times you do this program for kids?
She responds about 15 times a year
Which ages you focus on?
She answered first grade and kinder garden
How can evaluate your program?
Send self-stamp envelope for teacher it’s fit with their
curriculums and their opinion
Have you do this program at schools ?
Yes but we like to do it at hospital to have all devices we need.
HED 552 Public Health
Epidemiology Article Critique Assignment
Locate a Cohort, Case-Control, Cross Sectional Study,
Randomized Controlled Clinical Trial or a Systematic
Review/Meta Analysis in the American Journal of Epidemiology
or any other Epidemiology journal.
It may be available in ejournal format from the SJU Library

11. Select an article that interests you.
Evaluate using the criteria below.
All responses must be in the order requested below.
•
What is the research problem being investigated?
•
What is the rationale for studying this problem?
•
How comprehensive is the literature review?
•
What are the implications of the research?
•
Who is the study sample?
•
How was the research sample obtained?
•
What biases, exist in the sample if any?
•
What is the research design of the study (cohort, case control
etc.)?
•
What study methods were used?
•
How are these data presented?

12. •
Is the method of presentation effective?
•
Is the method of presentation accurate?
•
What were the conclusions of the study?
•
What are the implications of the finding for practice and future
research?
•
What are the limitations of the study?
All critiques must be typed using 12point, Times New Roman
font, double-spaced with one-inch margins
Remember in Graduate school there are no one word answers.
HED 552 Public Health & Epidemiology!
!
Article Critique Rubric!
!
!
!!
Aspect Expectation Weight
Formatting!!!
All questions are answered in

13. order. !
Complete reference is provided
and properly formatted.
25%
Content!!!
Each question is answered
thoroughly and demonstration of
knowledge of Key Concepts is
clear. Correct identification of
Bias, Limitations and
Confounding and a thorough
description of the Literature
Review, Implications for future
research/practice, and
Discussion of the Conclusions
are provided.
25%
Organization!!!
The work is organized into
paragraphs answering each
question in order. The writing is
clear and comprehensible.
25%

14. Grammar Work is free of spelling and
grammar errors. No use of
contractions. !!!!
25%
The assignment should consist of a Word Document. It should
include a summary of the relevant facts, the law, judicial
opinion and answer the case questions. All that is necessary for
an understanding of the case is important and required.
The report must go beyond the discussion of the problem posed
in the textbook, to achieve a superior grade. Do research outside
the textbook- this must include research outside the case
citation, do research on the parties and circumstances of the
case itself and incorporate some visual modality as a part of the
case analysis. Something about one of the parties, as well as
some background contained in the legal opinion. Doing
significant research outside the textbook is essential.
Utilize the case format below.
Case Analysis Format
Read and understand the case or question assigned.
Case: Penthouse International v. Barnes
Show your Analysis and Reasoning and make it clear you
understand the material. Be sure to incorporate the concepts of
the chapter we are studying to show your reasoning.
Dedicate at least one heading to each following outline topic:
Parties [Identify the plaintiff and the defendant]
Facts [Summarize only those facts critical to the outcome of the
case]

15. Procedure [Who brought the appeal? What was the outcome in
the lower court(s)?]
Issue [Note the central question or questions on which the case
turns]
Explain the applicable law(s). Use the textbook here. The law
should come from the same chapter as the case. Be sure to use
citations from the textbook including page numbers.
Holding [How did the court resolve the issue(s)? Who won?]
Reasoning [Explain the logic that supported the court's
decision]
Do significant research outside of the book and demonstrate that
you have in an obvious way. This refers to research beyond the
legal research. This involves something about the parties or
other interesting related area.
Show something you have discovered about the case, parties or
other important element from your own research. Be sure this is
obvious and adds value beyond the legal reasoning of the case.
***Dedicate 1 heading to each of the case question(s)
immediately following the case, Be sure to restate and fully
answer the questions
Questions: CRITICAL THINKING ABOUT THE LAW
One of the primary purposes of a judge’s opinion is to explain
the court’s reasoning in a particular case. A judge’s opinion is
not arbitrary, in the sense that a judge must give due
consideration to relevant facts and rules of law for any legal
issue. From a judge’s opinion, we are, therefore, able to know
not only a judge’s conclusion but also the reason the judge ruled
for one party over another. These opinions provide the court’s
rationale in a particular case, which may later be used as
precedent for subsequent cases that contain similar fact
patterns. In Case 16-2, the judge provided several reasons to
support the conclusion.

16. The next two questions relate to the judge’s reasoning in Case
16-2.
1. What reasons did the judge provide for ruling in favor of the
defendant?
Clue: To ensure that you have found a reason, ask yourself
whether what you have listed answers this question: “Why did
the court rule for the defendant?”
2. What aspects of the court’s reasoning were particularly
strong or weak? (Remember that just because reasons are given
does not mean that these reasons are necessarily strong.)
Clue: Reverse the roles in this case and assume that you are the
plaintiff’s lawyer. With which parts of the judge’s opinion
would you still disagree based on the court’s reasoning? Would
there be parts of the judge’s reasoning with which, even though
you were the opposing party, you would agree?
Wrap up with a Conclusion. This should summarize the key
aspects of the decision and your recommendations on the court's
ruling.
Include citations and a reference page with your sources. Use
APA style citations and references
Book Reference:
Kubasel, N. K., Brennan, B. A., Browne, M. N. (2017). The
Legal Environment of Business: Critical Thinking
Approach. pp. 414-415 Retrieved from
http://online.vitalsource.com/#/ books/9781323829264/