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Agent’s duty to act with due care when performing the responsibilities of the agency

An agent may work for two principals at the same time if the agent deals fairly with both.

If an agent suffers losses while acting for the principal, the principal has a duty to indemnify the agent for those losses.

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The Restatement (Third) of Agency has been adopted in about half of the states.

Leon works in an office environment and, during lunch, closes his office door and uses his personal laptop computer to search the Internet for pornography, accessing the company’s server via an Ethernet cable connection. The company may monitor his computer usage even though he is using a personally owned computer.

If a union chooses not to bring a grievance to arbitration, the individual union member always has the right to pursue the matter through a lawsuit to enforce union provisions.

If the plaintiff proves her or his prima facie case under the McDonnell Douglas standard, the burden of proof shifts to the defendant to evidence a legitimate and nondiscriminatory reason for the discriminatory action.

One disadvantage of a sole proprietorship business entity is that it is restricted to the principal and the principal’s immediate family in terms of number of employees who may work for the business.

If a sole proprietorship loses money, the principal may deduct the losses from her or his own personal tax liability, if any.

Family limited partnerships are primarily designed for estate planning and asset distribution for wealthy families.

One disadvantage of a sole proprietorship business entity is that it is restricted to a single location and cannot expand.

General partnerships are pass-through entities regarding taxation; however, limited partnerships are not pass-through entities for taxes.

A personal guarantee is a pledge from LLP members of personal assets to guarantee payment obligations of the business venture.

About half of the states provide the same level of protection to general partners in an LLP as is provided to a limited partner in a limited partnership.

States may require that LLPs carry liability insurance to protect clients and customers as a condition of LLP formation.

Privately held corporations are more common than are publicly held corporations.

A corporation exists as an independent person separate from its principals.

The sales of securities in the secondary market does not raise capital for the business whose stock is sold.
Annuities issued by insurance companies are exempt from full SEC registration requirements.
Federal securities laws can, depending on the language and circumstances, classify a business plan as a form of securities offering.

39-Substantial modifications to proposed rules may be published without going through the entire rulemaking process again.
40-Congress has no power to remove an agency head.
41-Administrative agencies at the state level do not issue licenses.
42-Most of the common law that regulated administrative law has been codified in the Administrative Procedures Act.
43- Administrative agencies are not empowered to hear cases of alleged violations of their regulations and must depend on the courts for adjudication.

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