Part 8- Agency Law, Chapter 35: The Agency Relationship, Doc 5

Analysis of Agency Law Cases 1. Del-Mar Development Corp. and Euclid Plaza Associates: o Issue: After Del-Mar leased a building to AALF, Euclid, the new owner, contested the lease, claiming it wasn’t bound by Del-Mar’s actions. o Analysis: Del-Mar was not acting as Euclid’s agent; therefore, it had neither actual nor apparent authority to bind Euclid to the lease. Apparent authority would require Euclid to give AALF reason to believe Del-Mar could lease on its behalf, which wasn’t the case here. 2. Karsten’s Sale Contract for Ling Company: o Issue: Karsten contracted to sell 700 pairs of golf shoes without Ling's permission. o Analysis: Since Ling imposed limitations on Karsten's authority but didn’t inform third parties, Karsten had apparent authority. Thus, Ling would likely be bound by Karsten's contract with Pro Golf. 3. Circle C Investments’ Topless Dancers: o Issue: Whether the dancers are independent contractors or employees under the Fair Labor Standards Act (FLSA). o Analysis: Due to Circle C’s control over dancers’ work schedules, required behavior, and fines for non-compliance, the dancers may be considered employees, which would make Circle C liable under FLSA. 4. Elliot Jarvin’s Undisclosed Clients at Merrill Lynch: o Issue: Jarvin’s retention of fees from personal clients, assisted by Merrill Lynch team members. o Analysis: Jarvin likely breached his fiduciary duty by not disclosing his private clients, which created a conflict of interest and misappropriated Merrill Lynch resources for personal gain. 5. Liberty Travel’s Duty to the Creteaus: o Issue: The Creteaus sued Liberty Travel for failing to inform them about safety issues at their accommodation. o Analysis: The Creteaus could argue that Liberty Travel, as their agent, breached its fiduciary duty by not ensuring safe accommodations or informing them of risks. 6. Vail Associates’ Disclosure to Perry Olsen’s Children: o Issue: Vail Associates’ failure to disclose Lindholm’s higher-price negotiation with another seller. o Analysis: As agents, Vail Associates should have disclosed relevant information affecting the transaction. Their failure to do so likely breached their fiduciary duty. 7. Grogan and Harvey’s Failure in Fiduciary Duty at NBC Universal: o Issue: Grogan misrepresented her qualifications and, with Harvey, failed to perform due diligence on a project. Analysis: Both Grogan and Harvey breached fiduciary duties by not exercising reasonable care and skill, leading to possible liability for NBCU’s loss. 8. Lawrence’s Conflict of Interest with Oskash Corp: o Issue: Oskash’s offer to contribute to Lawrence’s personal fund could impact his objectivity as Federal’s buyer. o Analysis: Accepting the contribution would likely violate Lawrence’s fiduciary duty, as it creates a conflict between personal interest and his duty to Federal. 9. Cheryl Underwood’s Self-Dealing Against Demming: o Issue: Underwood, initially acting for Demming, secretly negotiated to purchase the desired property herself. o Analysis: Underwood breached her fiduciary duty to Demming by failing to disclose her intention and opportunity to buy, creating grounds for Demming to claim damages or void the transaction. 10.Acceptance of Bankers Life’s Offer by Mrs. Trepanier: o Issue: Mrs. Trepanier’s acceptance on behalf of her comatose husband was followed by his death before finalization. o Analysis: Since Mr. Trepanier was incapacitated and died before acceptance, Bankers Life’s offer effectively lapsed with his passing, likely nullifying the contract formation. o