Ch. 35 HW Exercise
: What are the two types of authority that can be possessed by an agent? How is each created? What are the consequences to the principal when an agency is created? 1) There are two forms of authority, actual and apparent. Actual authority is either expressed or implied. Expressed authority is created by the principal’s actual words
(written or oral), whereas an agent has implied authority to do whatever is deemed reasonable. Apparent authority is when a principal’s actions and behavior leads a third party to believe the agent lacks actual authority but the third party nonetheless must rely on this appearance of so­called authority. The agent also cannot create apparent authority without the consent of the principal. The consequences of creating an agency is that the principal owes certain duties to the agent such as, compensation, reimbursement for money spent on principal’s services, and having to indemnify the agent for losses suffered in conducting business for the principal. Exercise
: What are the Reid factors and why are they important? List each of the factors, and indicate on which factor the greatest emphasis should be placed. In Reid, the Supreme Court carefully laid out twelve factors to be weighed in the work made for hire inquiry (1) the skill required; (2) the source of the instrumentalities and tools; (3) the location of the work; (4) the duration of the relationship between the parties;
(5) whether the hiring