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Agency Fidcuiary Relationship Essay

803 words - 4 pages

ISSUES
Rock star, Herman Phillips, hired retired ABC executive Wilson Bills to “find him work in television.” No written documentation existed of this work relationship, but at meetings with industry people, Phillips said to “work with Bills, he looks after me.” Bills negotiated and signed a six month acting contract with Valley Television Productions on Phillips’s behalf; however, Phillips quit the show two weeks into employment.
In a subsequent meeting, Phillips told Bills that he would pay his traveling expenses if Bills could find him another acting gig. The next night in a room at the Bay Hotel, Bills and Phillips were smoking marijuana; Bills’s lit marijuana cigarette caused ...view middle of the document...

A disclosed or partially disclosed principal is liable to a third party for a contract made by an agent who is acting within the scope of his or her authority.
To determine whether a worker is an employee or an independent contractor, courts consider the following: (1) how much direction and control the employer exercises over the details of the person’s work, (2) whether the person is engaged in an occupation or business distinct from that of the employer, (3) whether the work the person performs is usually done under the employer’s direction or without employer supervision, (4) who supplies tools used by the person, (5) the duration of the person’s employment, (6) how the person is paid for his work, and (7) what degree of skill is required of the worker.
As stated in the Edgewater case, for an employer to be held vicariously liable for an employee's negligent conduct the employee's wrongful act must be committed within the scope of his employment. Further, to support a finding that an employee's negligent act occurred within his scope of employment, it must be shown that his conduct was, to some degree, in furtherance of the interests of his employer.

APPLICATION
Despite a lack of written documentation, an agency by agreement relationship exists between Phillips and Bills based on their implied...

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