Week 5 - Tutorial Questions

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Jada Porter Fundamentals of Business Law 2/14/2024 Week 5: Tutorial Questions TQ 5.1: What are the four ways in which an agency relationship can be formed?  An agency relationship can be formed by an express agreement, implied authority, apparent authority, or ratification. Citation: Seton Hall University School of Law, Week 5: Video Presentation (2024) TQ 5.2: What is the difference between implied authority and apparent authority as explained in Meretta v. Peach ? Did the court find implied authority existed in Madden v. Kaiser Foundation ? Why or why not?  Meretta v. Peach explains that apparent authority “may arise when acts and appearances lead a third person reasonably to believe that an agency relationship exists” ( Meretta v. Peach , 195 Mich. App. 695 ). The court established that apparent authority “must be traceable to the principal and cannot be established by the acts and conduct of the agent” ( Meretta v. Peach , 195 Mich. App. 695 ). Implied authority is “the authority which an agent believes he possesses” ( Madden v. Kaiser Foundation Hospitals , Cal.3d 699 ). In Madden v. Kaiser Foundation, the court did find implied authority because the board was authorized to “negotiate contracts for group medical plans for state employees” ( Madden v. Kaiser Foundation Hospitals , Cal.3d 699 ). Citations: Madden v. Kaiser Foundation Hospitals , Cal.3d 699, 555 P.2d 1178 (1976) Meretta v. Peach , 195 Mich. App. 695, 491 N.W.2d 278 (Mich. Ct. App. 1992) TQ 5.3: In Phoenix Western Holding Corp. v. Gleeson , did the court find agency by ratification? Why or why not?  The court did not find agency by ratification in Phoenix Western Holding Corp v. Gleeson. In Phoenix Western Holding Corp v. Gleeson, the deed was executed before the acts that “allegedly bound Phoenix” so it cannot be subsequent approval ( Phoenix Western Holding Corporation v. Gleeson , 18 Ariz. App. 60 ). Clegg’s execution of the letter was not evidence of ratification because an agent cannot confer authority on themselves and proof of agency should come from the principal ( Phoenix Western Holding Corporation v. Gleeson , 18 Ariz. App. 60 ). Citation: Phoenix Western Holding Corporation v. Gleeson , 18 Ariz. App. 60, 500 P.2d 320 (Ariz. Ct. App. 1972)

TQ 5.4: What is the doctrine of respondeat superior? Why didn’t the doctrine apply in Burless? According to the court, under what circumstances will non-employee physicians be considered apparent agents of a hospital?  The doctrine of respondeat superior is an employer’s liability for torts committed by employees within the scope of their employment (Seton Hall Law 2024). The doctrine did not apply in Burless vs. West Virginia University Hospitals because the court found that “no actual or apparent agency relationship existed” between the physicians and the hospital ( Burless v. West Virginia University Hospitals, Inc. , 215 W. Va. 765 ). Non- employee physicians would be considered apparent agents of a hospital under the circumstances that the hospital “committed an act” or “created a circumstance” that would cause a reasonable person to believe that there was an agency relationship present ( Burless v. West Virginia University Hospitals, Inc. , 215 W. Va. 765 ). Citations: Burless v. West Virginia University Hospitals, Inc. , 215 W. Va. 765, 601 S.E.2d 85 (W. Va. 2004) Seton Hall University School of Law, Week 5: Video Presentation (2024) TQ 5.5: What is a sole proprietorship as defined by the court in Patterson v. V&M Auto Body? What are the primary advantages and drawbacks of sole proprietorships?  In Patterson v. V&M Auto Body, the court defined a sole proprietorship as a legal identity that is not a separate legal entity “of the individual who owns it” ( Patterson v. V. M Auto Body , 63 Ohio St. 3d 573 ). This means that a person is still liable for all obligations of their business that is done under the proprietorship. Sole proprietorships have advantages such as giving the owner total control of the business and all profits which are only taxed once to the owner. However, sole proprietorships also have drawbacks such as the sources of business capital being limited to the owner’s earnings, contributions, and personal credit which can make it difficult for their business to grow. Another drawback is that sole proprietors are personally responsible for their business’s debts and liabilities. Citation: Patterson v. V. M Auto Body , 63 Ohio St. 3d 573, 589 N.E.2d 1306 (Ohio 1992)

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