3.02 Activity 1
Agency Law Matching Activity
Instructions: Match the vocabulary term with the correct definition.
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1. Principal
2. Third party
3. General agent
4. Special agent
5. Partially disclosed agent
6. Subagent
7. Agent’s agent
8. Coagents
9. Gratuitous agent
10. Actual authority
11. Apparent authority
A. The express and implied powers of an agent
B. Agent that is given the authority to work with a third party but forbidden to reveal the identity of the principal
C. Agent that is given the authority to perform specific tasks
D. The person or company whom the agent deals with on behalf of the principal
E. Agent that is given the authority to perform a variety of tasks
F. Two or more agents working together
G. Individual who gives authority to the agent
H. An agent appointed by another agent without the knowledge or consent of the principal
I. Agent that works for free
J. An agent appointed by another agent with the knowledge and consent of the principal
K. The powers of the agent are created by law or circumstance
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3.02 Activity 2
Agency Law Review
Instructions: Read each scenario carefully. Answer the corresponding question(s) in complete sentence form.
Agency Law Basics
1. Luis works for CarMax. He sells a 2013 Mustang Convertible to Alex for $40,000.
a. Who is the principal?
b. Who is the agent?
c. Who is the third party?
2. Lyndsay is a cashier at McDonalds. Anthony and Ryan bought four Happy Meals.
a. Who is the agent?
b. Who is the principal?
c. Who is the third party?
3. Nick is a manger of “designer” cupcake bakery. Currently, he is trying to get a $10,000 business loan from Bank of America.
a. Who is the principal?
b. Who is the agent?
c. Who is the third party?
4. Jessica is the road manager for a local band. She is currently trying to book the band at four local festivals. She has been talking to the festival organizers.
a. Who is the principal?
b. Who is the agent?
c. Who is the third party?
Types of Agent Authority
5. Michael told Greg to sell his collection of vintage heavy metal band t-shirts. He told Greg to accept no less than $20 for each t-shirt. Also, Michael said to ONLY accept cash.
a. Who is the agent?
b. Who is the principal?
c. What type of authority did the principal grant to this agent?
6. Greg had a yard sale. He was selling a number of items at the yard sale, including Michael’s vintage t-shirts. Greg allowed people to try on the t-shirts before purchasing them. What type of authority the agent use when he allowed people to try on the t-shirts?
7. Alex was walking around the yard sale. Krista thought he was in charge of the yard sale. She walked up to Alex and gave him $25 for a t-shirt. Alex accepted the money.What type of authority does Alex possess?
3.02 Activity 2
Type of Agent
8. Lynn is a receptionist at the Precision Architectural Firm. Her major responsibilities are answering the phone, taking messages, and setting appointments for one of the company’s senior architects. What type of agent is Lynn?
9. Jessica was contracted by Alyssa to write a jingle for an upcoming radio advertisement. With Alyssa’s consent, Jessica got her brother, Ted, to write the jingle. What type of agent is Ted?
10. Jim is an assistant manager at an automotive repair company. The major responsibilities of his job include hiring employees, employee training, creating the employee schedule, and purchasing basic office supplies. What type of agent is Jim?
11. Tony hired Karen and Stephanie to design new football uniforms for his little league team. What type of agents are Karen and Stephanie?
12. Patricia contracted with Sloane Construction Company to re-pave the driveway; and plant trees, scrubs, and flowers to the front of her house. Sloane Construction Company contracted with The Grass is Always Greener (GAG) Land Renovation Specialists to plant the trees, scrubs, and flowers. Patricia did not know that GAGLand Renovation Specialists would be doing the landscaping. What type of agent is GAGLand Renovation Specialists?
13. Serena recently became the foster parent to four special needs children. Serena needs to enroll the children into Bright Beginnings Elementary School; take them to medical appointments; approve and sign for all medical procedures; find an after-school tutoring program for the children; buy them food and clothing, etc. What type of agent is Serena if the state of North Carolina pays her $5,000 a month to care for the children?
14. Andrea volunteers at the Humane Society. On Saturdays, she goes to local pet stores with a few rescue dogs and cats to try to find them permanent homes. What type of agent is Andrea?
3.02 Activity 3
Agency Law Firm Project
Scenario: You are the owner of a law firm that represents several high-profile clients. The majority of your clients are professional athletes, book authors, big-budget screenplay writers, actors, talk show hosts, and musicians. The purpose of this assignment is for you to summarize your contract negotiations for each client.
Step #1: Create a name for your law firm.
Step #2: Create a mission statement for your law firm. This is just a sentence or two that describes the purpose or mission of your law firm. See examples below:
"We are a law firm that believes we give back through community
involvement and service."
"We are a law firm that believes individual development through education
enhances our ability and the quality of our work."
Step #3: Find FIVE “clients” and make sure these “clients” are current, popular high-profile individuals who represent different occupations: professional athletes, book authors, big-budget screenplay writers, actors, talk show hosts, and musicians.
Step #4: You need to find each client a new team, book deal, movie deal, talk show, major world tour, etc. and summarize the major contract negotiation:
§ Explain WHY they needed your services.
§ Include the words, agent, principal, and third party in your summary.
§ Write the outcome of the contract negotiations and datethat the contract will become valid.
Example:The principal, Michael Jordan, retained the services of special agentXavier Lane. Mr. Jordan wished to purchase the Charlotte Bobcats from Bob Johnson. Mr. Jordan hired Xavier Lane to negotiate the terms of the purchase with the third party, Mr. Bob Johnson. The third party’s initial offer was $300 million. After conferring with the principal, the special agent denied the offer and presented a counter-offer of $275 million. On March 17, 2010, the bid of $275 millionto purchase the Charlotte Bobcats was approved.
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3.02 Activity 3
Agency Law Firm Project Rubric
Name of Law Firm (2 Points)
Mission Statement (3 Points)
Summary 1: Criteria / Total Possible Points / Your ScoreSummary clearly explains why the agent’s services are needed by the principal / 4
Summary uses the key terms (agent, principal, and third party) appropriately / 3
Summary includes the contract outcome and a valid date / 3
Summary 2: Criteria / Total Possible Points / Your Score
Summary clearly explains why the agent’s services are needed by the principal / 4
Summary uses the key terms (agent, principal, and third party) appropriately / 3
Summary includes the contract outcome and a valid date / 3
Summary 3: Criteria / Total Possible Points / Your Score
Summary clearly explains why the agent’s services are needed by the principal / 4
Summary uses the key terms (agent, principal, and third party) appropriately / 3
Summary includes the contract outcome and a valid date / 3
Summary 4: Criteria / Total Possible Points / Your Score
Summary clearly explains why the agent’s services are needed by the principal / 4
Summary uses the key terms (agent, principal, and third party) appropriately / 3
Summary includes the contract outcome and a valid date / 3
3.03 Activity 3
Summary 5: Criteria / Total Possible Points / Your ScoreSummary clearly explains why the agent’s services are needed by the principal / 4
Summary uses the key terms (agent, principal, and third party) appropriately / 3
Summary includes the contract outcome and a valid date / 3
Total Score / 55
3.03 Activity 4
Understanding Agency Relationships:
Principal-Agent
Proprietor-Independent Contractor
Instructions: Answer the following questions about agency relationships.
1. Define the principal-agent relationship. Try to write at least five characteristics of this relationship.
2. What are examples of the principal-agent relationship?
3. Define the proprietor-independent contractor relationship. Try to write at least two characteristics of this relationship.
4. What are examples of the proprietor-independent contractor relationship?
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