Jody Blanke Professor of Computer Information Systems and Law Agency Jody Blanke Professor of Computer Information Systems and Law

Formation of Agency Relationships By Agreement Written Oral Without Agreement Agency by estoppel

Agent’s Ability to Bind the Principal to Contracts Actual Authority Express Implied Apparent Authority Ratification

Principal’s Duties Duty of compensation Duty of reimbursement and indemnification Duty of cooperation

Agent’s Duties Duty of loyalty Duty of obedience Duty to communicate to the principal Duty to exercise due care Duty to render an accounting

Liability of Principals (Employers) Principals (employers) are vicariously liable for the torts of their agents (employees) committed during the scope of their agency (employment) Respondeat superior (“let the master answer”) 1. There must be a master-servant relationship 2. The tort must have been committed during the scope of agency (employment) business Scope of employment “detour” – slight deviation from employer’s interests “frolic” – does not serve employer’s interests

Employee or Independent Contractor How much control is exercised by the employer Hours of work Place of work Equipment used Degree of skill Similarity to business of employer Duration of work Frequency of pay Exertion of independent judgment