Download - Unit 5 The Law and the Workplace Chapter 13 Agency and Employment 13.2 Types of Authority and Agents
Unit 5 The Law and Unit 5 The Law and the Workplacethe Workplace
Chapter 13 Agency and Chapter 13 Agency and EmploymentEmployment
13.2 Types of Authority and 13.2 Types of Authority and AgentsAgents
ObjectivesObjectives►Students will identify the different Students will identify the different
types of agency.types of agency.►Students will explain the difference Students will explain the difference
between actual and apparent authoritybetween actual and apparent authority►Students will distinguish between the Students will distinguish between the
different types of agents.different types of agents.
Academic VocabularyAcademic Vocabulary►Apparent-Adjective, means clear or Apparent-Adjective, means clear or
obvious obvious
► Incidental-Adjective, means Incidental-Adjective, means unpredictable or casualunpredictable or casual
►Extent-Noun, means the degree to Extent-Noun, means the degree to which something goeswhich something goes
Types of Agent AuthorityTypes of Agent Authority Actual Authority-the real power a principle Actual Authority-the real power a principle
gives to an agentgives to an agent►Express Authority-comes from the orders, Express Authority-comes from the orders,
commands, or instructions a principal explicitly commands, or instructions a principal explicitly gives and agentgives and agent
Power of Attorney-any writing granting someone Power of Attorney-any writing granting someone authority to act as an agentauthority to act as an agent►General Power of Attorney-very board authority General Power of Attorney-very board authority ►Limited Power of Attorney-Limited to what is Limited Power of Attorney-Limited to what is
statedstated►Durable Power of Attorney-Make decisions when Durable Power of Attorney-Make decisions when
medically incapacitatedmedically incapacitated
Types of Agent AuthorityTypes of Agent Authority Implied Authority-additional Implied Authority-additional
authority that allows an agent to authority that allows an agent to perform reasonable acts necessary perform reasonable acts necessary to carry out the express authorityto carry out the express authority
Apparent Authority-authority that a Apparent Authority-authority that a third party believes an agent has third party believes an agent has while acting on behalf of the while acting on behalf of the principleprinciple
Types of AgentsTypes of Agents General Agent-agent who has General Agent-agent who has
authority to perform any act within authority to perform any act within the scope of the businessthe scope of the business
Special Agent-agent whose authority Special Agent-agent whose authority is restricted to accomplishing only a is restricted to accomplishing only a specific job or purposespecific job or purpose
Types of AgentsTypes of Agents Agents who relate to other agentsAgents who relate to other agents►Used to classify agents based on Used to classify agents based on their relationship with other agentstheir relationship with other agents Subagents-agent lawfully appointed by Subagents-agent lawfully appointed by
another agentanother agent Agents Agent-agent appointed by an Agents Agent-agent appointed by an
agent without authorityagent without authority Coagents-2 or more agents hired by Coagents-2 or more agents hired by
the principlethe principle
ActivityActivity►List the 3 parties in an agency List the 3 parties in an agency
relationship.relationship.►Describe the difference between a Describe the difference between a
general and a special agent.general and a special agent.► Identify the legal distinction between a Identify the legal distinction between a
subagent and an agent’s agent.subagent and an agent’s agent.►Write a paragraph classifying what type Write a paragraph classifying what type
of authority is involved in the following of authority is involved in the following situation.situation.
ActivityActivity► Paul, a clothing buyer, has purchased textiles Paul, a clothing buyer, has purchased textiles
from Rachel for two years. In the past, Rachel from Rachel for two years. In the past, Rachel has given him a 20 percent discount. This has given him a 20 percent discount. This year, Paul has purchased $100,000 of textiles, year, Paul has purchased $100,000 of textiles, but when he got the bill, he had received only but when he got the bill, he had received only a 10 percent discount. When he called Rachel a 10 percent discount. When he called Rachel to try to raise the discount back to 20 percent, to try to raise the discount back to 20 percent, she said she did not have the authority to do she said she did not have the authority to do that. What type of authority did Rachel have? that. What type of authority did Rachel have? WhyWhy