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| Topic: |
Business
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| Number of pages / Number of words: |
12 / 3314 |
Essay's paper body
Some business agency relationships are formed even when both parties do not intend on creating an agency relationship. For example, if a franchise’s advertising and marketing is controlled from the parent company to a point where the franchise’s sales are affected then an agency relationship exists between the franchise (agent) and the parent company (principal), even when the relationship is not expressed...
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The business agency relationships consist of five basic common law duties: duty of loyalty, duty to obey instructions, duty to exercise care and skills, duty to communicate information, and duty to account for funds and property (Cheeseman). Of the five common law duties, the most important common law duty an agent owes the principal is the fiduciary duty of loyalty...
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