Business Law Questions Essay Example | Topics and Well Written Essays - 2000 words

Business Law Questions - Essay Example The law of agency can be construed by a sharp attorney representing a plaintiff to support a transfer the ownership of a property in question to the agent in a similar way as alter ego theories. Basically, the agency law in PCV situations involves an array of agreements that bring together the agent, and the principal in which case the former becomes mandated under the law to assume the responsibilities of the latter to formalize a legitimate agreement to work with a third party (Steinberg, 2012). Under such a scenario, the agent automatically assumes the principal’s role, thus can enter into business deals and negotiation with third parties. According to Steinberg (2012), the agency law guides the operation of agents and the third parties whom they have business dealings with; and provides for principals to play a second fiddle to the agents when the latter acts on their behalf. The reciprocal privileges and responsibility between signatory parties to a contract mirrors business and legal practicalities. A business proprietor usually relies on a worker or another individual to operate an enterprise. When dealing with a corporation, which generally is a conjured legal entity, human agents take precedence. In such a case the principal is required by the law, through the agreement signed by the agent to play a second fiddle in the running of the business or being held responsible in case of any liability. An agent’s lawyer can therefore argue that the law grants the agent sweeping powers to execute his or her role within the jurisdiction of the organization to exercise his or her will. When an agent legally assumes c ontrol of the business, a third party may entrust his or her details and deals with the agent and enter into an agreement with the principal’s representative if he or she introduces himself so (Brams, 1999). And owing to the technicalities witnessed by those who would want to corroborate the identity and or authority of the agent, most of third parties often show willingness to work with the agent and disregard any other party regardless of their superiority. It is in such a scenario, the corporation can be deemed as the â€Å"alter ego† of the agent. Agency powers The law of agency provides the agent with three legal milestones that whoever occupies the position can tacitly exploit to his or her advantage. First, the agency enjoys actual authority. Actual authority which is enjoyed by the plaintiff often arises in two ways: either where the principal expressly confers power on the agent, or where the authority is implied (Brams, 1999). Authority is a product of consen sus, and its implementation is usually based on fact. Therefore, the law of agency grants the agent protection from the principal, especially where the former has acted within the agency’s mandate, as provided for under implied powers. Secondly, implied actual authority, or the usual authority, refers to powers that an agent enjoys by virtue of being fairly necessary to exercise his or her express authority. Implied actual authority can be assumed by the agent owing to his or her role as the principal’s proxy (Steinberg, 2012). In a nutshell, in any case the agent makes a decision regarding the business they have assumed control of, the decision is deemed binding and the principal will be expected to comply with the agent’s move. Such a scenario makes the property in the hands of the agent an alter ego of himself or herself. Question 2: Hypothetically, starting from a blank state legislative slate, the only form of business organization that would be needed toda y would be the Limited Liability Company form. Analyze and critique this statement. A limited liability company (LLC), is a corporate structure that