Question

An independent contractor who forms an agency relationship with an employer must... always protect the interests...

An independent contractor who forms an agency relationship with an employer must...

always protect the interests of the third party customer.
have a written contract that details the terms of engagement.
act primarily for the benefit of the employer in matters connected with the undertaking.
file agency paperwork with the federal government.

Homework Answers

Answer #1

The principal is the party who gives legal authority to another to act on his or her behalf in a business transaction. The agent is the party who is legally authorized to act on behalf of the principal in the principal's business transaction. The agent owes the principal a fiduciary duty.

All agency relationships are fiduciary relationships. This means the relationship involves a high level of trust and confidence between the principal and the agent. Because the principal has trusted the agent to supervise or protect the principal's property, the agent owes a fiduciary duty to the principal. This means the agent is obligated to act in the best interests of the principal. Agency allows the agent to work on behalf of the principal as if the principal was present and acting alone. In an agency relationship, the agent's actions create legal obligations for the principal. Therefore, the agent is obliged to make business decisions that are conducive to how the principal would act.

The two key fiduciary duties an agent owes to its principal are as follows:

  • it must not place itself in a position where its own interests conflict with those of the principal or whether there is a real possibility that will happen (the 'no conflict' rule);
  • it must not profit from its position at the expense of the principal (the 'no profit' rule).

Therefore , the independent contractor who forms an agency relationship with an employer must act “Primarily for the benefit of the employer in matters connected with undertaking “

ANSWER :   ACT PRIMARILY FOR THE BENEFIT OF THE EMPLOYER IN MATTERS CONNECT WITH THE UNDERTAKING

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Please read the case and answer the questions below: 1-3 The employer publishes the South Texas...
Please read the case and answer the questions below: 1-3 The employer publishes the South Texas Clarion daily newspaper, employing 726 carriers on 780 routes through the rural Rio Grande river valley. In addition to the Clarion, the carriers deliver seven other newspapers e.g., The Wall Street Journal. The employer operates four distribution centers (warehouses) where carriers pick up the papers to take on their routes. Each distribution center has general manager and several "District Managers" who supervise the work...
The employer publishes the South Texas Clarion daily newspaper, employing 726 carriers on 780 routes through...
The employer publishes the South Texas Clarion daily newspaper, employing 726 carriers on 780 routes through the rural Rio Grande river valley. In addition to the Clarion, the carriers deliver seven other newspapers e.g., The Wall Street Journal. The employer operates four distribution centers (warehouses) where carriers pick up the papers to take on their routes. Each distribution center has general manager and several "District Managers" who supervise the work of 30-50 carriers. A few carriers work multiple routes. In...
I completed everything except for the last part. I know my answers are right because i...
I completed everything except for the last part. I know my answers are right because i double checked but i just dont know how to answer the last section. Problem 3-1 Schedule C (LO 3.1) Scott Butterfield is self-employed as a CPA. He uses the cash method of accounting, and his Social Security number is 644-47-7833. His principal business code is 541211. Scott's CPA practice is located at 678 Third Street, Riverside, CA 92860. Scott’s income statement for the year...
Lance H. and Wanda B. Dean are married and live at 431 Yucca Drive, Santa Fe,...
Lance H. and Wanda B. Dean are married and live at 431 Yucca Drive, Santa Fe, NM 87501. Lance works for the convention bureau of the local Chamber of Commerce, while Wanda is employed part-time as a paralegal for a law firm. During 2016, the Deans had the following receipts: Salaries ($60,000 for Lance, $41,000 for Wanda) $101,000 Interest income—    City of Albuquerque general purpose bonds $1,000    Ford Motor company bonds 1,100    Ally Bank certificate of deposit 400 2,500 Child...
What tools could AA leaders have used to increase their awareness of internal and external issues?...
What tools could AA leaders have used to increase their awareness of internal and external issues? ???ALASKA AIRLINES: NAVIGATING CHANGE In the autumn of 2007, Alaska Airlines executives adjourned at the end of a long and stressful day in the midst of a multi-day strategic planning session. Most headed outside to relax, unwind and enjoy a bonfire on the shore of Semiahmoo Spit, outside the meeting venue in Blaine, a seaport town in northwest Washington state. Meanwhile, several members of...
What role could the governance of ethics have played if it had been in existence in...
What role could the governance of ethics have played if it had been in existence in the organization? Assess the leadership of Enron from an ethical perspective. THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among the top Fortune 500 companies, collapsed in 2001 under a mountain of debt...
Discuss ethical issues that can be identified in this case and the mode of managing ethics...
Discuss ethical issues that can be identified in this case and the mode of managing ethics Enron finds itself in this case. How would you describe the ethical culture and levels of trust at Enron? Provide reasons for your assessment. THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among...
Discuss how the respective organizations’ relations with stakeholders could have potentially been affected by the events...
Discuss how the respective organizations’ relations with stakeholders could have potentially been affected by the events that took place at Enron and how the situation could have been dealt with differently to prevent further damage? THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among the top Fortune 500 companies,...
Please read the article and answear about questions. Determining the Value of the Business After you...
Please read the article and answear about questions. Determining the Value of the Business After you have completed a thorough and exacting investigation, you need to analyze all the infor- mation you have gathered. This is the time to consult with your business, financial, and legal advis- ers to arrive at an estimate of the value of the business. Outside advisers are impartial and are more likely to see the bad things about the business than are you. You should...
Mattel Responds to Ethical Challenges Business Ethics This case was written by Debbie Thorne, John Fraedrich,...
Mattel Responds to Ethical Challenges Business Ethics This case was written by Debbie Thorne, John Fraedrich, O. C. Ferrell, and Jennifer Jackson, with the editorial assistance of Jennifer Sawayda. This case was developed for classroom discussion rather than to illustrate either effective or ineffective handling of an administrative, ethical, or legal discussion by management. All sources used for this case were obtained through publicly available material. Mattel, Inc. is a world leader in the design, manufacture, and marketing of family...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT