11 - Notes were as per instructor\'s dictation of law and law procedures PDF

Preview

Summary

Notes were as per instructor's dictation of law and law procedures...

Description

Self Branding Wouldberry country club from 4- 6. Interview preparation. Aging Principal Relationship Agency Principal Transaction- 3 people involved- the Principal, the agent and the Third party Common Principal Relationship- Employee(Agent) and Employer(Principal). The people you deal with on behalf of the employer are the third party. What type of of relationship is a agency principal relationship- it’s a fiduciary relationship. Churn an account- breaking the fiduciary relationship Scope of the relationship- the principal has to define what’s the scope of the relationship. (General power of Attorney of someone for example). The scope of the relationship is important because it defines my liability as a principal. What government agency is very interested in the principal- agent status and will go to great lengths to investigate it? - the IRS. It has a test to prove if you have a employer and employee relationship. If you are a independant contractor, IRS depends on you for your taxes. Employees musts show up to work, sign in. Direction and Supervision- it can be the difference between liable and not liable. If you have 1-2 family dwelling, if someone is working, don’t stand and watch them. If you are not watching them and they injure themselves, the smart thing to do is to let them do their work and go away. Under NY state law. If I commute to KPMG and I am working for them, I get into a car accident, the other driver can only sue me. If I go to a client in Riverhead, and then when I get into an accident while coming back to KPMG, the they can sue me and KPMG. Stopping at work, creates the scope of the employment and then KPMG is also liable. 7.5% that’s the employee’s share of social security. The general insurance policy in NY, is created by the state, if the state gave lobbies to Uber drivers, then they are protected. If you work for an accounting firm, someone comes into the office and claims that the service is great, if the accounting firm takes all her information, but the firm doesn’t make the return, he doesn’t make it, he gives it to the staff accountant.

The firm as the principal is responsible for the scope of work for the employee. If I am an independant contractor, the employer is not responsible for the employee.

Classification of a Principal: 1. Disclosed Principal- if he is acting on his scope for Metlife, he as an agent can’t be sued that the principal later failed to do. You’d normally see him sign something like an RHD(i don’t want people to know that I am working for Metlife) on Behalf of Metlife. 2. Partially Disclosed RHD as Agent3. Undisclosed Principal- What might make me want to do that? Let’s say for example, a property is being sold, we go over and bid for it, we will give you a credit line, you have a limit to buy that property. We might want to get the property using the credit line without having Adelphi’s name in the ring since people might hate Adelphi. This kind of transaction is known as a Storm man’s Transaction. When the Agent acts on behalf of the principal without making it disclosed. As the third party the agent does not need to say who is he working for, if the person with the business intent does not like that secrecy, the deal can be called off. In both 2 and 3, the agent is liable to the principal in case of something going wrong, the 1st isn’t liable to the principal. The easiest way to create a principal, agent relationship is an Agreement, what the agreement implies, for example if someone is the manager of a business. It is assumed that he is able to hire others to do the work that is needed. Another type of agency creation is the appearance you create- Agency by Estoppel. Negotiating a deal on behalf of someone else. Another one is, to scout for deals and then when a great deal comes along, the agent can grab the deal on behalf of the principal. The principal didn’t say anything about the purchase. Agency by Ratification- when the action wasn’t previously approved but ratified later. Operation of Law is another way. For example, if you are walking a road, and you fall down and you start foaming in the mouth, the Emergency worker doesn’t need your permission to work on you. Once the administrator of the state can also come into play without explicit permission so that’s also under the operation of law. In a business, when it becomes bankrupt, the trustee that’s appointed by the court has the authority to act on the

business’ behalf.

Very important Schematic A to P (Agent owes to Principal) 1.Performance- as an agent, he needs to show up 2.Competence/ Required Degree of Skill 3.Obedience 4.Loyalty/ No self Dealing 5. Accounting 6. Communication/ Notification

P to A(Principal owes to Agent) 1. Compensation 2. Indemnification (Security) 3. Reimbursement for expenses 4. Safe Working Environment 5. Communication and Direction...