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Peter Andrus owned an apartment building and has been operating as sole proprietor from its inception. Recently, he has been delegating much of the running of the building to his newly hired administrative assistant. Mr. Andrus has been reading about the concept of agency relationship and is becoming concerned about liability should anything happen during the course of his administrative assistant acting on his behalf. You have been tasked with responding to Mr. Andrus’ questions and concerns as follows:
- Explain the requirements for a valid agency relationship. Provide a real-world example of an Agent-Principal relationship you are familiar with and explain why you consider this an agency relationship.
- Discuss what is required to ratify an agency contract and what would be the responsibility of the principal.
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- Amy is caring for her aging mother, Milly. Milly has a number of health issues. She has given Amy a power of attorney so that Amy can help pay her bills and handle her business affairs. Amy is concerned that Milly will eventually use up all her assets, including losing her house, to provide for her health care needs. To protect against that eventuality, Amy intends to use her power of attorney to put Milly’s house into Amy’s name. True or False: Amy’s transfer of the house is a breach of her fiduciary duty as Milly’s agent.From the Letter below, kindly draft an updated letter to the Permanent Secretary requesting action to be taken on Water Damages to Property in Barzey’s. RE: Water Damages to Property in Barzey’s The above-captioned subject refers. Over the past few years, the ghaut which runs alongside my property, the stones that were used to protect my property and the embankment has been shifted/moved because of heavy rainfall and so has caused significant damage to my property. The Property in question relates to ................. In late 2022, I had conversations with Messrs. Felix Persuad and Davon Williams in respect to my property in Barzey’s and water flowing from the Ghaut onto my property. As recent as February 2024, there was significant soil erosion and eating away of the embankment to my property and eventually will cause damage to vegetation on my property. Please see attach pictures which highlights the circumstances of soil erosion on my property. In light of the above, it is being…If the principal loses their mental capacity to continue the agency relationship, the agent may continue to operate on the principal's behalf until the purpose of the agency has been fulfilled. T/F
- John and Jane are partners who purchase and renovate houses. Five years ago, they purchased a house in Portsmouth, New Hampshire with all of their available cash. Having no money to make repairs they asked a contractor Jim to agree to do repairs on the house for a third of the profit when the house sold. The contractor repaired the house within a year. Jim has worked with John and Jane previously there was no written agreement. Once the house was repaired John and Jane rented the house. Recently without telling Jim, John and Jane entered into a purchase and sales agreement with their tenant for a $200,000 profit. Jim found out about the proposed sale and has filed a lawsuit against John and Jane for his share of the sale profits and rental proceeds. Jim also requested and received from the Court a pre-judgment attachment which prevents the sale of the house until the lawsuit is resolved. Due to the increased value of the real estate the Tenants are now suing John and Jane asking…Dr. Doyle E. Campbell, an ophthalmologist, established his practice in southern Ohio in 1971. Many of Dr. Campbell’s patients are elderly people who qualify for federal Medicare benefits and state Medicaid benefits. Under the existing financing system, a doctor who treats a Medicare patient is required to submit a “Medicare Health Insurance Claim Form” (HCFA Form 1500). The doctor is required to certify that “the services shown on this form were medically indicated and necessary for the health of the patient and were personally rendered by me or were rendered incident to my professional service by my employees.” Claims Dr. Campbell submitted for his elderly patients ranged from $900 to $950, of which $530 to $680 were covered by the Medicare program. The government alleged that Dr. Campbell billed Medicare for several treatments that were either not performed or not necessary. 1 - Provide a paragraph with more than five sentences (i.e., in the section for “Purport”) that interprets the…SECTION D Read the following extract and then answer the question belowA client is interested in setting up a business and does not know which form of business to use. He has been told that he can form a sole proprietorship, or partnership, or a limited liability company. He comes seeking for business advises on the advantages and disadvantages of a registered company. Make a comparison between a sole proprietorship, partnership, and a limited liability company.
- What does agency law tell us about who may sign or executed agreements for a company and who is liable when they do.Bryan was recently hired by a large X Chemical company, to oversee the construction of production facilitiesto produce a new product. X Chemical developed a new industrial lubricant which it felt could be producedat a price close to those of its competitors. The plant to manufacture the lubricant was built on land adjacentto the East River. X Chemical had already applied for and received the necessary permit that allows thecompany to dump waste materials in to the river. Several other chemical plants in the near vicinity are alsoreleasing their waste materials into the river.Bryan is concerned because the government agency which oversees the permit process has granted XChemical a permit to release more waste in the river than previously anticipated. An additional stage in theproduction process which would have reduced the waste and recycled some materials became unnecessarydue to the regulatory agency's decision. Because the additional process would have added capital andproduction…Elaine is a secretary for a business. One day a customer comes in to file a new contract while Elaine is seated at her boss’s desk. The customer assumes Elaine is a person of authority, and Elaine is knowledgeable enough to help the customer file the contract. Which response aligns best with this situation? A) Enforceable or unenforceable with agency B) MUST be enforced because Elaine is an agent C) Enforceable or unenforceable—no agency
- Which of the following is/are true?I. An entity shall present any items of the income and expenses as extraordinary in the notes to financialstatement.II. An entity shall not present any items of the income and expenses as extraordinary in the face of incomestatement or statement of comprehensive income.III. An entity shall present any items of the income and expenses as extraordinary in the face of the incomestatement or statement of comprehensive income.IV. An entity shall not present any items of the income and expenses as extraordinary in the notes to financialstatement. a. I and IIb. II and IIIc. I and IVd. II and IVIf the directors of a company make a decision, which later on proves not to be a good decision and causes the company to lose money, will the directors be liable for failure to exercise their duty of care and diligence? (300 words)Bailey is a limited partner in his company. A general partner in his company is going on an extended vacation and has asked Bailey to run the company while he is gone. If Bailey agrees to do so, he will no longer qualify as a limited partner. ( a) True b) False