Legal Issues Paper

Essay by k-to-the-cUniversity, Bachelor'sA, August 2007

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In today's business world, there are a number of ways in which to legally organize and structure a business. Carefully choosing and creating the correct legal entity will ultimately have a huge impact on the success and profitability of the business venture. Some common legal issues for a business include; agency law, business entities, e-commerce, and the legal impacts of businesses ran electronically. This paper will discuss these points and explain how each of these points may or may not impact a business. Keep in mind as the situations could alternatively be different depending on the company and the stipulations. Join us in our journey of discovery and learn with us!Agency LawAgency Law can be defined as common law or case law based on accumulated judgments from court cases. As there are liabilities for agent to principal, there are also liabilities for principal to agent. In agency law there are several duties that an agent owes the principal.

The liabilities of that principal to agent are; the duty of compensation, the duty to reimburse and indemnify, and the duty of keeping accounts (Barnes, 2003, pg. 325).

Agent to Principal DutiesThe duty of loyalty requires the agent to be completely honest in all dealings with the principal, avoiding conflict and full disclosure (Barnes, 2003, pg. 318). An agent should receive compensation from the principal but this is not necessary. Conflict of interest, self dealing, secret profits and the misuse of confidential information should all be avoided by the agent in dealings with the principal and agency business (Barnes, 2003, pg. 318). Self dealing occurs when the agent sells his property to the principal. Secret profits are when the agent receives compensation from a third party and the principal without the principals' knowledge. The agent owes a fiduciary duty by not acting...