Exam 14: Agency and the Employment Relationship

In Guz v. Bechtel National, where Guz was fired after 22 years good service in a personnel cutback and sued for breach of implied contract and covenant of fair dealing, the California high court held that Guz:

Clark, a movie producer, was allowed to work at a movie production company's offices (ITC) out of courtesy. His business card listed the ITC address and his phone calls were handled by ITC staff. In the office, he made a deal to produce a movie for another company. When problems developed and the company, presuming Clark worked for ITC, sued ITC. The court would be likely to hold that ITC:

Power of attorney:

Apparent authority arises when:

In France v. Southern Equipment, where a worker was seriously hurt on a roofing job, the courts held that the owner of the building being roofed was not responsible for the injury suffered by an employee of an independent contractor doing the roof work.

When you go on vacation you give your neighbor authority to pick up your mail and watch for burglars for you. You tell the neighbor not to go into the house or let anyone else in. A fire on the hills threatens your house. The neighbor goes in to carry out valuables before the house burns. This action is:

The authority given by the principal to an agent, conferring on the agent the power and right to change the principal's legal status is referred to as:

Suppose a hurricane is going to hit South Florida; there are two days to prepare for it and the owner of a house is on a raft trip in Brazil and cannot be reached. The next door neighbors spend $800 on plywood and other materials to protect the house from the hurricane. Legally, this expenditure is likely to be:

In Yim v. J's Fashion Accessories, Inc., where J's Fashion sued Yim for failing to pay for goods he bought under the name Ho Tae and Yim denied liability on the grounds that he had been acting as an agent for Hosung Enterprise, Inc which also did business under the name Ho Tae, the courts held that Yim was liable because:

An alleged principal becomes a real principal by:

The principal's duty to indemnify the agent means the principal must:

An agency may not be ended by:

An independent contractor is an example of a(n):

Which of the following is not a duty owed by the agent to the principal:

Karen has a history of drunk driving and has been convicted several times. The Pizza Parlor hires her as a delivery person, despite knowing her history. If Karen causes an accident while on the job because she has been drinking you would expect the courts to:

Fact Pattern 14-1 Emile owns Emile's Used Car Emporium. Several people work for him at the Emporium. When Emile is gone, he leaves one of his best salespersons, Meg, in charge. Over the years, Emile has given Meg the authority to contract with vendors, negotiate sales, and conclude car sales contracts in his name. One August, Emile takes a long vacation, leaving Meg in charge. While he is gone a hurricane hits Florida where the Emporium is located, causing severe damage. Because Emile is floating down the Amazon, Meg cannot reach him for instructions. She decides that rather than leave the place in shambles, she will hire people to repair the Emporium. Meg hires a carpenter to rebuild a wall that was blown down by the storm. Phil, the carpenter, is busy at work on his scaffold when Meg's Scottish terrier Adam, who she keeps with her at work, plows into the scaffolding while chasing a cat. Phil is knocked off the scaffold and falls ten feet to the ground, suffering a broken leg. -Refer to Fact Pattern 14-1. In the case of the carpenter, what relation is there to Emile?

The rule of law imposing vicarious liability upon an innocent principal is known as:

Insuring an agent against losses suffered during the course of authorized transactions is part of the principal's:

The duties of a principal to an agent do not include:

In Guz v. Bechtel National, where Guz was fired after 22 years good service in a personnel cutback and sued for improper dismissal, the California high court held that Guz: