MGMT 217 Chapter Notes - Chapter 16: Independent Contractor, Fiduciary, Actual Notice
Document Summary
Agents have more discretion over how and when they do their work than ordinary employees: employer-independent contractor relationships. Independent contractors are not employees because those who hire them have no control over the details of their physical performance. Whether the worker engages in other business if business is distinct from employer"s, likely an ic. This power is granted by the courts if the agent is unable to contact the principal: ex: a railroad engineer may contract on behalf of his/her employer for medical care for an injured motorist hit by the train. Liability in agency relationships: a question arises as to which party should be held liable for contracts formed by the agent or for torts/crimes committed by the agent. Principal is liable if agent merely detours from principal"s business but not if agent frolics. Imposes vicarious liability (indirect liability imposed on a supervisory party [employer] for the actions of a subordinate.
