Description
Agent/Principal Liability
Tom works as a traveling salesperson for his company Steel Products Inc. Tom has a specific geographic area in which to solicit orders and service companies during assigned time periods. He has been provided a company car for this purpose. When his company car is in the shop for maintenance Tom takes his personal car to use covering his sales calls. Having finished all of his calls in Steeltown before noon he leaves for Coaltown for his next appointment at 2 pm. Knowing that Coaltown is only 20 miles away he decides part way down the road to visit an old college friend who lives just 10 miles off the main road. Tom suddenly realizes that it is 1:45 pm and he will be late for his first appointment in Coaltown. In his rush to get back to the main road, Tom crashes his car into a tractor severely injuring JohnJohn the tractor driver who files a complaint against Steel Products for his injuries.
DO: Use F-IRAC to analyze Steel Products liability to JohnJohn
The file uploaded called "Agency" should help. Please use F-IRAC format. Doesnt have to be double spaced or a word count. Just do F-IRAC format.
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Explanation & Answer
Attached.
JohnJohn and Steel Products Inc. Set of Facts
Facts
An agency relationship existed between Steel Products Inc. and Tom. Steel Product Inc. was
the principal while Tom was the agent. The accident occurred while Tom was working on
behalf of Steel Products Inc. During the accident JohnJohn who is a third person in the
agency relationship was injured.
Issue
Is Steel Products liable for the injuries got by JohnJohn?
The rule of law
Duties of an Agent to the Principal
Follow the instructions of the Principal. Failure to follow the Principal’s instructions may
make the agent liable for damages to the principal (Latimer 2014,8-150).
Exercise diligence and skill. Standard is a situation where a rational person is expected to
exercise diligence and skill in all circumstances (Latimer 2014, 8-160)
Act in person. An agent has the duty to act in person since he has been contracted for the
qualities that he has unless there is express or implied authority to delegate to another
individual.
Analysis
When the accident happened, the agent was on his way to the next appointment. He was
working on behalf of Steel Products Inc. when the accident happened. Since he was late he
was hurrying so as to get to the appointment on time. While in the process of attending the
appointment on behalf Steel Products Inc. he brought injury to a third person in this case
JohnJohn. Since the agent was following the instructions given to him by the principal, the
principal is liable for any damages brought about by the agent. However the agent is also
liable for the damages that t...