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Agency

REG Chapter 5 · Area II · Blueprint II.A

Every business acts through people: employees, sales reps, managers, even the CPA who signs a Form 2848. Agency law decides when their acts bind the business, what they owe it, and who pays when they cause harm. Mina Park, owner of Coastal Pottery and a Harbor Lane client, hires a sales agent named Luis, and almost every agency rule shows up in their first year. The Blueprint asks you to recall the types of authority, decide whether an agency exists, and identify duties and liabilities in a scenario.

In this chapter

1. What an agency is and how it is created
2. Types of authority: actual, apparent and ratification
3. Duties between principal and agent
4. Contract liability: disclosed, partially disclosed and undisclosed principals
5. Tort liability and respondeat superior
6. Ending the agency

This chapter has 6 lessons, 50 practice MCQs with explanations and 20 simulations, plus flashcards and a recall sheet.

What this chapter covers

• Actual and apparent authority
• whether an agency exists
• ratification
• duties and liabilities of agents and principals
• termination

Chapter 4: Legal duties and responsibilities · Chapter 6: Contracts