AGENCY

    1. 2-Part Test
      1. A principal will be liable for the torts committed by an agent if:
        1. A principal-agent relationship exists; AND
        2. Agent committed the tort w/in the scope of that relationship.
    1. Principal-Agent Relationship
      1. 3 Requirements
        1. Assent – informal agreement btw principal and agent w/ capacity
          1. Principal – contractual capacity
          2. Agent – minimal mental capacity
        2. Benefit – agent’s conduct must be for the principal’s benefit
        3. Control – principal must have right to control agent by having the power to supervise the matter the agent performs
      2. Sub-Agents and Borrowed Agents – apply same test
      3. Agent v. Independent Contractor
        1. RULE – principal will not be vicariously liable for independent contractor’s torts
        2. EXCEPTIONS
          1. Ultrahazardous Activities – if IC commits tort while conducting an ultrahazardous activity, principal will be vicariously liable
            1. Surgery is not an ultrahazardous activity
          2. Estoppel – if principal holds out the IC w/ appearance of agency, principal will be estopped from denying vicarious liability
        3. Determining Factors
          1. Single most important factor is that a principal has no right to control orsupervise an IC.  Courts also look to:
            1. Characterization of parties, whether business is distinct, degree of skill required, whose tools/facilities are used, period of employment, basis of compensation
    2. Scope of Principal-Agent Relationship Factors
      1. Was the conduct of the kind agent was hired to perform?
      2. Did the tort occur on the job?
        1. Frolic – new, independent journey (not w/in scope)
        2. Detour – mere departure from assigned task (w/in scope)
      3. Did the agent intend to benefit the principal?
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