Management and Organizational Studies 2275A/B Chapter Notes - Chapter 16: Constructive Notice, Law Of Agency, Consumer Protection

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: Philip King

Document Summary

Corporation has primary liability for a tort when it is regarded as the entity that actually committed the tort. Identification theory a theory specifying that a corporation is liable when the person committing the wrong is the corporation"s directing mind. Generally it is the highly placed corporate officers who are classified as. A corporation has vicarious liability when the tort has been committed by an agent or employee who is not a directing mind of the corporation. Agency law largely determines when a corporation is liable on a contract. Bound by actions of the agent only if the agent is acting within actual or apparent authority. Doctrine of constructive notice: apparent authority could be limited by filing with the incorporation documents a specific limitation of the agent"s authority (abolished) To avoid personal liability person should make sure there is a clause clearly stating they are signing on behalf of the corporation.