1. Unit 5 The Law and the Workplace Chapter 13 Agency and Employment 13.2 Types of Authority and Agents

2. Objectives ► Students will identify the different types of agency. ► Students will explain the difference between actual and apparent authority ► Students will distinguish between the different types of agents.

3. Academic Vocabulary ► Apparent-Adjective, means clear or obvious ► Incidental-Adjective, means unpredictable or casual ► Extent-Noun, means the degree to which something goes

4. Types of Agent Authority  Actual Authority-the real power a principle gives to an agent ► Express Authority-comes from the orders, commands, or instructions a principal explicitly gives and agent  Power of Attorney-any writing granting someone authority to act as an agent ► General Power of Attorney-very board authority ► Limited Power of Attorney-Limited to what is stated ► Durable Power of Attorney-Make decisions when medically incapacitated

5. Types of Agent Authority  Implied Authority-additional authority that allows an agent to perform reasonable acts necessary to carry out the express authority  Apparent Authority-authority that a third party believes an agent has while acting on behalf of the principle

6. Types of Agents  General Agent-agent who has authority to perform any act within the scope of the business  Special Agent-agent whose authority is restricted to accomplishing only a specific job or purpose

7. Types of Agents  Agents who relate to other agents ► Used to classify agents based on their relationship with other agents  Subagents-agent lawfully appointed by another agent  Agents Agent-agent appointed by an agent without authority  Coagents-2 or more agents hired by the principle

8. Activity ► List the 3 parties in an agency relationship. ► Describe the difference between a general and a special agent. ► Identify the legal distinction between a subagent and an agent’s agent. ► Write a paragraph classifying what type of authority is involved in the following situation.

9. Activity ► Paul, a clothing buyer, has purchased textiles from Rachel for two years. In the past, Rachel has given him a 20 percent discount. This year, Paul has purchased $100,000 of textiles, but when he got the bill, he had received only a 10 percent discount. When he called Rachel to try to raise the discount back to 20 percent, she said she did not have the authority to do that. What type of authority did Rachel have? Why