Agency Contracts versus Distributor Contracts

Assessing Control, Freedom & Exploring Risks for New Business Markets

For an entrepreneur, expanding one’s corporation to other states or countries may be challenging because of differing laws and corporate cultures. An entrepreneur may identify desirable growth areas, but logistical issues such as lack of contact with potential customers, not understanding the local laws, and the inability to identify consumers’ preferences could complicate the decision to open a new market.

Generally, it is easier to expand economic activities abroad if a representative native to the country of interest can physically represent the company´s interests overseas.

Sometimes, it may be beneficial to reduce an initial profit by hiring an onsite representative in the new business zone. In practice, the long-term benefits do not diminish by increasing costs and sharing profits. The representative’s local networking abilities, legal knowledge, and understanding of operating requirements tends to expand business possibilities in the new territory, thus reducing initial costs.

An entrepreneur could attain a partner through a joint venture or incorporate a subsidiary to run the operations in the expanded territory, joining with a third party.

If third-party inclusion is personally undesirable, an entrepreneur can hire a representative, which often achieves better results and multiplies contracts in the expansion zone. The two basic legal structures for these representatives are agency contracts and distributor contracts.

Both contracts provide expansion opportunities, with different levels of third-party independence.

  1. Agency Contracts:

    In agency contracts, the company hires a local individual, who generates new business in a previously unused territory.

    The agent is an employee of the corporation, usually with an exclusive territory, that earns commission through the general amount of profit that the company generates.

    An important characteristic of an agency representative is that the agent does not profit from goods. Instead, the agent arranges sales deals for the manufacturer. The agent facilitates business and protects the company’s interests.

  2. Distributor contracts:

    Distributor contracts, on the other hand, have more manufacturer independence. Agents buy goods from manufacturers directly, reselling the goods at their own cost and risk.

    The profits for the distributor are determined by the difference of the goods’ buying price and resale price. In very specific cases, the manufacturer could intervene in the price-fixing process. However, the common rule in antitrust matters is that any price fixing between the distributor and the manufacturer violates antitrust statutes.

The following blogs discuss main points that entrepreneurs, looking to expand businesses nationally and internationally, should consider when deciding between agency contracts and distributor contracts.

Conclusion

Some innovative business strategies that an entrepreneur can consider in order to increase profits are not only based in business administration logic, but also in law, as a practical tool for expanding business. These articles are informative and thought-provoking for those deciding the best way to explore new markets.

Both of the contracts discussed are basic methods used to increase a company’s profit and expand the regions where a company can legally conduct business. Without major investments, a company can attract the right representatives in a desired trading region.

While this is a broad and complicated subject, these articles focused on some of the main aspects that a businessperson may consider before deciding between agency and distributor contracts. From taxation to special rights conceded by the specific jurisdictions at the termination of agency and distributor agreements, to opening a branch or subsidiary abroad, an entrepreneur should consider the best way to minimize risk and maximize profit.

Both agency and distributor contracts have unique advantages, and the manufacturer must decide between two differing values, control over independence.

If a company opts for control, an agency contract may better meet the company’s needs. However, an agency contract could legally bind the company to foreign tax obligations or in legal battles with the agent over contract disputes. The manufacturer conducts transactions, including exporting products, collecting necessary disbursements, and loss absorption if the end product does not perform as expected.

If a company opts for a representative with more freedom and less supervision, the distributor agreement could be a better choice. However, the company is still responsible for product liability.

In this case, two particular aspects of the distributor contract should be considered.

Any improvements done by the distributor should be communicated to the manufacturer to ensure that these product design changes fall within the distributor’s contract-approved responsibilities and scope. In the distributor contract, the manufacturer may have forbid product modification.

The manufacturer must also ensure that the distributor does not use the company’s trademarks, controlling any negative consequences affecting the company resulting from a distributor’s error.

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Why Does a Manufacturer Need to Consider Tort Law?

Dear bloggers, in this month’s release, we are going to attempt to understand the importance of American tort law from a business point of view. This issue is often reported in the news from the consumer’s point of view. We believe that the manufacturer is liable for the defects of their products, but the real issues go much deeper than that. For those different issues, we will devote some detailed discussions during this month’s blog.

Why do torts liability exists? The reasons are numerous, and in my opinion, it is reasonable if we consider the most important functions that scholars have identified on tort liability

  •  Compensation for injuries. Perhaps the most important question that it is addressed by tort law is who is responsible for the payment of a wrongdoing. Is the responsible party the victim or the actor? One does not need to understand law in-depth to answer that the victim should not pay. Tort law is the practice that lets us define in which cases and circumstances actors would have to assume the burden of paying for damages.
  • Deterrence or prevention of injurious conduct. Another function of tort law imposes fear of the consequences of negligent actors. The fear of tort law might condition one’s behavior to a more appropriate level of care, that the actor otherwise would not use, without the possibility of a tort claim.

When we speak of tort law, the first thought that comes to mind is negligence liability caused by accidents, but tort law is much more detailed than that. Even further, we can find several cases of liability in which negligence has nothing to do with the case per se. However, negligence is a direct consequence of problems with the product or the service provided by the company.

For a business person, the most important part of tort law is usually the products liability because this rule will determinate the level of responsibility that he or she will owe to one’s customers.

However, the category of products liability is considered to be part of the inadvertent physical injury in tort law, along with negligence and strict liability. One of the main differences between products liability and negligence liability is payment. In negligence liability, payment is given because firstly, one looks to reimburse the losses of the victim, and secondly, because of deterrence.

Products liability, on the other hand, looks to generate action of the manufacturer, forcing him or her to review his production process in order to avoid as many mistakes as realistically possible in order to protect the general public.

This means that it does not matter if the manufacturer can prove that he or she was not negligent, and that the defect product was only a minor mistake, or an accident. Such facts are not important to determine responsibility; a harmful result caused by a faulty product is enough proof to claim that the manufacturer is liable for the harm. Other claims could be important after the fact, as will be discussed in the punitive damage trial post.

Reference: Legal > What Level of Care Should a Service Provider have towards its Consumers to Avoid Liability under Tort Law?

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Obligations of Parties in Agency Contracts: the Agent

The binding and main purpose of a contract is that both parties assume legal obligations by signing the agreement.

Every agent must realize that despite the clauses of the contract, some duties are inherently understood and undocumented.

To fulfill the contract, the agent must act in the company’s best interests. While it is not the agent’s responsibility to ensure that every transaction concludes with positive results for the company, the agent diligently works on the company’s behalf in an effort to meet its desired outcome.

When delegated by the company, the agent must negotiate and conclude transactions when appropriate. An agent, unlike a regular employee, does not require regular instructions and supervision from management. Instead, an agent has more freedom, and must act on the company’s behalf, making decisions at one’s discretion. In this case, an agent acts more independently and within one’s knowledge base to aid the company’s end goal.

The agent is responsible for communicating any necessary information to the company regarding the business. Based on the information’s value, communication between an agent and the company may change the business strategy altogether. The agent provides relevant information to the company, thus aiding in decision-making and business strategies.

The agent must respect and follow the instructions of company. Even though the agent has freedom to execute the assignment, the agent works for the company and must follow its instructions.

Based on the agent’s experience, the agent may identify imminent danger to both the project and company if the company’s instructions are strictly followed. While the agent cannot disregard the company’s guidelines, the agent must communicate the identified concerns to the company, allowing the company to make an informed decision.

If the agent fails to communicate guideline concerns to the company, the agent could be held liable based on one’s experience or expertise. The agent is not only an employee that aids the company in economic expansion, but the agent it is also hired for one’s task-specific expertise. In short, an agent’s professional opinion is an integral part of one’s expected efforts to support the company.

Reference: International Shipping > Terminating an Agent in Foreign Countries

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Five Benefits of Having a Lawyer

If you have been wounded in an automobile mishap or wounded by other person’s acts, you have most likely been told that you require consulting with an individual injury lawyer. In reality, in most of the situations, this is for your help to hire a legal representative to hold your case. Below are five benefits of having a lawyer for personal injury that represents you.

1. Personal Injury Lawyers make out Individual Injury Law

This might sound clear, but lots of people consider that they recognize just in so far as a legal representative and that an attorney just saves the wealth. That is merely not correct. Very soon as you have been harmed does not signify that you are permitted to occupied recompense for your wounds. Only some states make out causal disregard nowadays, but causal neglect says that if you contributed to an automobile mishap, you are not allowed compensation. The majority of the states make out some type of relative negligence, which permits you to get at least several compensations for your injuries depending on your association in the automobile mishap.

2. A Personal Injury Lawyer Discerns Assurance Law

This might sound like it does not make any diversity, but it can create theatrical dissimilarity. For instance, an assurance policy might give the profit of $25,000 to a wounded person. The assurance adjuster informs you that he will provide you the whole $25,000 as you have a fine personal injury allege. What the assurance adjuster does not let know is that there might be methods under state rule that you can get more. For example, various states permit “stacking” of assurance policies in definite conditions and this means that you can get more recompense.

You profit by an individual injury legal representative knowing if state laws enable you somewhat more recompense for your injuries than is obvious.

3. Personal Injury Lawyers know Estimated Values of Injuries.

Practiced attorneys have handled many cases and have an excellent idea of what injuries are significant. As well, personal wound lawyers make out what details might enhance or reduce the amount of recompense to which you are allowed. By asset of the lawyers’ experience, assurance adjusters and legal representatives cannot BS or pretend the worth of a personal injury alleged.

4. A Personal Injury Legal Representative will go to the Courtyard

Assurance adjusters make out that if any case goes to the courtyard, the assurance company might be obligatory for reimburse a lot more than they crave to give. The adjusters also make out that if you are on behalf of yourself, it will be difficult for you to go towards the courtyard. They identify that an individual injury legal representative will go to the courtyard. Hence, the adjusters should be more practical in what they present you as recompense for your own injuries.

5. Personal Injury Attorneys Usually Increase the Worth of a Case

Fundamentally, for all the causes declared beyond, assurance adjusters will present more recompense when a legal representative is on behalf of you.

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Legal Safety

This day and age everything is about safety and insurance be it a company, car furniture or jewelry. As the level of uncertainty increases worldwide, so does the need for assurance and reliability, this explains the boom in insurance industries and the law sector, the public needs protection along with someone to protect them.

Protection does not always mean physical protection; it can mean protection of assets, reputation and health. Different mechanisms of protection are used depending on the object being protected. Companies may use lawyers to protect their image, asset holders can use insurance companies to protect their assets, public figures use professional public relations specialists to protect their reputation and others use doctors and medicines to protect health.

It is always advisable to hire professional bodies for protection, just as it is important to hire fit lifeguards, muscular body guards and durable bullet proof vests to protect ones life. Using professional bodies/objects increases the likeliness of protection as they are especially built for that purpose. However, due to globalization and competition, there are a number of protection institutions/objects to choose from and the choice usually depends on the price, quality offered and preference of the one being protected.

Many companies and institutions may pose the question “Why hire lawyers?” as they are very expensive and most of the time does nothing but paperwork. The answer to the question of why hire lawyers lies in the fact that as more and more people become aware of their rights as consumers or customers, they increasingly seek out methods of issuing a lawsuit against a company, hospital , school or any other entity. Companies should also hire lawyers in order to ensure their company is up to date with the changing rules and regulations to avoid any mess with the government.

The issue of why hire lawyers is not posed only by companies, it is also posed by individuals, those who are setting up businesses, filing for bankruptcy or for solving domestic disputes. Once again the answer lies in protection. Individuals feel more protected when they hire someone from outside to manage their affairs, it is also highly recommended as the legal process is quite complicated and involved a lot of paperwork.

Individuals also protect their health through medications; this explains the thriving health industry. However it seems that the more people seek to protect themselves, the more calamity they seem to get into such as natural disasters, new diseases and other unprecedented effects. Previously it was unheard of insuring companies offering insurance against natural disasters; it was only available in a few areas of the glove which were prone to earthquakes. However recently, almost if not all insurance companies offer protection against natural disasters, and if one company is not able to provide such a service, another company co-shared the service.

Protection is sought out to such an extent that now even insurance companies require sub insurers to protect them against losses and unprecedented events. These companies are called reinsurance companies.

Also see: Legal Facts > When You Need a Lawyer

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Why Use a Lawyer

There can be many reasons for hiring a lawyer. In day to day lives, we do not often get to pay attention to small things, but often crimes can take place even when we are not paying attention. And sometimes these crimes or wrongdoings can be related to property, money etc.

Property dispute is the most common cause for hiring a lawyer. The dispute can arise among siblings wanting to have claims over a certain piece of land that might have been left behind by their father. Again, many people can file cases against others for allegedly sneaking into other’s property or doing some illegal business. Oftentimes, lawyers are hired to fight cases of tenants and landlords. These types of disputes can be very complicated, because in most countries, the laws are usually lenient towards the tenants, taking into consideration humanitarian issues. So if one has given his house on rent and the tenant is not leaving the house within the stipulated time, then a case might have to be registered against that person and the matter might be taken up in court. In such a case, hiring a lawyer becomes essential.

There can be other cases where a lawyer might be needed as well. Lawyers are needed to fight cases where allegations are made or where compensations are demanded. For example, a certain human rights organization might want compensations from a rich industrialist for allegedly destroying the habitation and lifestyles of the poor tribes in the region. These sorts of disputes are very common in developing countries where there is a constant struggle between the upper and the working classes.

Again, industrial disputes too can warrantee appointing lawyers. But these lawyers are different types of lawyers and they specialize in the company and industry acts, besides the nation’s labor laws in force. Whatever the purpose or the type of the lawyer, there is an underlying similarity in the work that each one does. Each lawyer will try to maintain a cordial yet formal relationship with the client and will be like a friend, a guide and a philosopher. They can guide and advice when the time calls for taking urgent decisions about certain things. Their expertise and knowledge in legal matters come in really handy when someone is in a legal tangle.

A foreigner may get trapped due to reasons like inadequate identity documents or some forms of misunderstandings. In such cases, the foreigner may not even be allowed to visit the nearest embassy of the person’s country. In such a case, a lawyer can help the person in a big way to seek help and intervention from the home country.

Again, divorce cases, child custody cases and adultery cases also require one to hire a lawyer. The lawyer can provide assistance throughout the case, besides fighting for the client in the court. The lawyer can help build the case from the scratch or if one is hired in the middle of a case by replacing another, the lawyer can also modify the case accordingly to suit the requirements of his/her client.

Reference: Real Estate > Why use a Lawyer

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Strict Liability: It is Possible to be Held Liable for a Tort without Negligence?

As we discovered, the general rule under tort law is negligence liability, in which the defendant will be held liable for one’s actions if a jury determines that the level of care used by the defendant under the case’s circumstances was unreasonable.

Sometimes, in exceptional cases and always based on public policy reasons, the law applies a higher standard of liability. This means that the level of care used by the actor in the incident that resulted in damages is inapplicable. This rule focuses on the level of risk that the activity itself creates for others.

When the law applies a standard that any wrong outcome will result in liability for the actor, regardless of one’s care level, one is faced with a strict liability rule.

In all these cases, the law permits a plaintiff to recover damages from a defendant without proving that the defendant acted unreasonably. One only needs to prove that the defendant was engaged in the activity, and that the damages are a result of the actions of the defendant; or, in other words, that the action of the defendant directly resulted in the wrongdoing.

For example, in many states, if you drive over the permissible speed limit, you are liable under strict liability standards for any damages you cause to others during an accident. This is because one chose to violate the rules established for driving.

There are two main arguments that justify this kind of liability. Some argue that such liability is a kind of corrective justice because the person that creates the dangerous situation is the one that pays for its consequences. The second argument suggests that by imposing strict liability, people will use an appropriate level of care, which develops one’s civic conduct. In most strict liability cases, the actor is the only individual in a position to exercise control over a certain activity. For example, if a company wants to build nuclear reactor facilities to preserve and create energy, it will be liable for any accident concerning the reactor.

One of the traditional cases of strict liability it is a fire, where an individual intentionally starts a fire on one’s own land. Imagine a case where the owner of a lot wants to burn excess brush, and the fire spreads onto neighboring land. The individual will be held liable under a strict liability rule because he or she created the risk, which resulted in wrongdoing and damages.

On a modern approach, strict liability rules are based on the creation of abnormally dangerous activities, which are exceptional activities that most individuals would not engage in. This theory is based on the argument that because the risk is unreasonable, we can recognize it since the risk has the potential to greatly harm others. In addition, there is no alternative for diminishing the harm by exercising greater care, etc.

Reference: Legal > Exculpatory Agreements: How to Avoid Some Causes of Liability

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Do you know when you need a Lawyer?

There are numbers of people who are involved in doing business and in this way they are able to get the services. Some of the businessmen are doing business on the very small scale and some of them are involved in very high scale business on the web. Every type of business needs some kind of assistance to run properly. There should be some sort of management among the people doing business and those who are involved in doing business by themselves. There should be someone who can give proper guidance on the financial situations and can regulate the finance solutions for you and your business.

Businesses have to be properly managed in order to get the maximum results and you can establish your business in a better way. There are some special individuals who have great importance in your business and if you are going to neglect their services. Your management skills should be very advanced regarding your business and you would be getting some exclusive links. If you are going for a business meeting then you may have to follow some specific rules and regulations.

The same scenario would be faced in life because everyone has to stay in a few limits. If the limits are crossed then you have to pay huge amount of fines. If you want to stay on the safe side then it would be preferable that you should consult someone who can properly guide you for the rules and regulations. He can give you assistance for your personal matters and if you are coordinating to your life partners then what would be the correct deal with situation. Everything needs to be understood properly so that different issues can be resolved properly. Financial problems, family problems and DUI problems along with fines and penalties will be very bad for you and if you face them then you will know when you need a lawyer.

There would be some limitations which should be imposed on you for the illegal activities. Never get yourself involved in the illegal activities so there would be some difficulties for you and your personal life as well. You may not be able to continue working in the same perspectives. Your society status and personal life management should be very good so that everything remains perfect in all perspectives.

The solutions to most of your problems are the lawyers. They have the eligibility to give you proper guidance on all the major issues which should be kept cool in all perspectives and they do not leave bad impression on others. You should be stable and the level of your life should remain constant. The consistency of your life can be kept perfect and if you haven’t hired the correct person then you will know when you need a lawyer soon. Correct management if the necessity of our lives and it can only be achieved if you have hired proper individuals for this purpose. Involvement in crimes and social aspects will tell you when you need lawyer.

Also see: Legal Facts > Stereotyping

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Why Lawyers are Important for All

One may have to face some severe problems in life and if there is no backup available for him then the situation can become even worse. Everyone needs to understand the importance of those men who are involved in saving your reputation and who can be held responsible for your safety purposes in different situations. You may have to contact lawyers in life to consult about various situations. One may be in serious problems while he is going to consult his lawyer for legal advice.

It is not necessary to consult with lawyers just in serious problems. You can make them a backup for yourself as well even you are not smart enough with your budget. Because they are the one who can properly give you guidance about all your legal aspects and they can be the one who can solve your issues. Consulting lawyers on initial level is very important and if you are willing to start a new business then this consultancy would become even more important. You need to understand that there are numbers of aspects in all kinds of businesses which should be understood properly.

If you already have a reputed business then you may need to solve some serious problems regarding your business with the help of lawyers. Law can not be understood very easily unless a professional explains it to you. Laws are also based on proper rules and regulations according to entities. Governments and representatives of different companies are involved to ensure that all those rules and regulations are properly followed and if not the case then there would be some charge on that particular company which hasn’t responded correctly. There are registrars and developers who give permissions about the services and many others aspects of business and it would be done with proper documentation. These are all legal documents and a legally professional person is required from your side to support you. This is the reason why lawyers have great importance.

They are the ones who understand the laws and legal liabilities. There are many aspects in legal liabilities that you needs to understand in depth but you can not do it without the consultancy of a lawyer. They are the only one who have complete knowledge about everything related to law and they can guide in a perfect manner where as no one can do it in same case. There are many people who are already using the services of attorneys and they are quite satisfied with them and there is no need to pay internet lawyers a very high fee as well. People whether having a business on a large scale or a smaller scale on the world, both are interested in getting the services from lawyers so that they can maximize their outputs and more revenue can be generated with limited resources or resources up to certain extent. So consulting lawyers would be very good and it can give one lots of benefits to people who are involved in different types of troubles.

Also see: Legal Facts > Why Hire Lawyers and Legal Advisors for Business and Personal Issues

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Selecting a Lawyer

A lawyer can be required for many purposes in one’s life. At times, the unexpected happens like personal injuries or some property disputes or some marital problems like divorce and litigation. Other cases where a lawyer can be hired are child custody disputes, disputes over allocation of land or property, privacy invasion issues, personal security or harassment issues, issues of giving compensations, monetary or otherwise, for causing physical, mental or material harm etc. Whatever the case may be, hiring a lawyer becomes very crucial whenever the case takes a turn where it can be taken up by the court of law.

There are several things that one needs to consider before hiring a lawyer. First of all, the lawyer’s reputation and experience should be considered. These are two factors which can turn out to be determining factors at the end of the day. If the case is complicated, involving murders or rapes etc., then it is preferable to go with a lawyer who has tons of experience. With the cushion of experience under his belt, the lawyer should be able to handle even the most challenging of cases with relative ease. Since the profession of a lawyer requires a towering personality and a deep understanding of human and criminal nature, one should only go for a person who can speak confidently and has sharp intellect. Oftentimes, people with lesser intelligence and knowledge can join the ranks of lawyers, but they must be avoided at all costs if the case is very important, and especially if the case involves matters of life and death.

This is where experience and reputation comes in really handy. If a lawyer is reputed for having won most of the cases, then it can be safely assumed that the person is a good lawyer. But even if one has experience, it cannot be said with certainty that the person is a good lawyer by profession, unless it has been found out that he has indeed won a vast majority of the cases he has fought. One who has the habit of losing will naturally find it difficult to win and therefore there is no need to risk going for such a lawyer.

So the first thing that a person or a family or a group or an entity should look to do while hiring a lawyer, is enquire about the lawyer’s background in details. The lawyer’s educational qualifications and other credentials should also be enquired about. Apart from this, the lawyer also needs to be a good and kind-hearted person, if the case is complicated and warrantees emotional support from the lawyer. Examples of such cases include the divorce and child custody cases, murder cases etc.

If the lawyer cannot sympathize with the suffering client, then it can be very difficult to establish the right kind of bonding that is necessary to be established between the lawyer and the client. Finally, it is equally important to make sure that the lawyer has expertise in the kind of case that he is going to take up. In other words, there is no point in going for a lawyer who does not have experience in murder cases, even though he might have had a lot of experience in other types of cases. That is because that experience would be irrelevant to the case in question.

Also see: Legal Facts > The Importance of a Lawyer

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Can an Employer be Held Liability for the Actions of an Employee?

One of the most important ways in which tort law is applicable on a day to day basis for any business is through its employees. From the moment a business makes the decision to hire an individual, that person is connected to the company, in more ways than simply providing services for the organization. For this reason, a good personnel selection can avoid several legal problems for any employer.

The question of whether or not a company should be liable for damages incurred by its employees is the kind of speculation that provokes very different answers, depending on one’s personal view and one’s answer. For a consumer, the response is clear; of course, a company should be held liable for the actions of any employee. For the management of the organization, on the other hand, this situation depends on the circumstances. The company will try to reduce, to the extent possible, the number of situations in which the company pays for any damages resulting from the consequences of its employees’ actions.

The general rule would be that a person cannot be held liable for the actions of another. But in this case, tort law provides a solution based on public welfare, creating an exception to this general rule.

We need to consider that in some exceptional cases, it is possible to hold one person liable for the actions of another, if one is in a situation applicable to strict liability to a third party, which is called “vicarious liability.” Under this law, the main point of interest and that requires examination is not the actor that generated the wrongful act. The responsibility is not based on a simple fault.

According to the vicarious liability doctrine, an employer is responsible for the actions of an employee because the company is the responsible party of the employee that committed the wrongful act.

Does vicarious liability mean that an employer is liable for any tort action of an employee? Of course not! An employer will only be liable for an employee’s actions that were carried out by the employee based on the scope of their employment.

For example, say you own a pizzeria. For that reason, you need to hire a driver to deliver your pizzas. If the driver hits a pedestrian while delivering a pizza, the company can be held liable under vicarious liability. But, if the delivery person hits a pedestrian after one’s shift at the pizzeria is over, the driver is the only responsible party for the wrongdoing.

What elements help us determinate if the employer is potentially liable for the tort? This involves a case by case review. One aspect that can always help to answer this problem relates to the actions that the employee is directly responsible for.

Was the tort committed under the scope of employment? If the actor was carrying out the assignment that one was hired to perform, the employer could be held liable for the damages suffered by the pedestrian in the pizzeria case.

Also see: Legal > Why the Implied Warranty of Merchantability is a Tort and not a Breach of Contract

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Benefits of Using Lawyers in Different Aspects of Life

Professional people always take professional steps in their lives so that better results can be achieved no matter what kind of situation is being imposed on them and under what circumstance they have to go through. There are several ways to improvise in the life. You may be doing your business as entrepreneurship or you may have to do business with partnerships. Every work or any business done in this world is according to some sets of rules and regulations and they are the one which guides the way of a business. This is why acts are made and policies are constructed just to improvise better quality of work. More chances will be given to the employees and there would be no injustice with anyone.

If there is some injustice with someone then who can be held liable for that purpose or who will be given punish for it? These questions are really important and if there is no answer to these questions then there would be injustice all around. Workers will never get their get their wages and no benefits will be provided to the employees. Every type of hard work would be directly rejected by the employers because there would be no care and self respect between them. There would be a very important requirement of something which can make some justice all around. Something will be required to settle every aspect. This is why these laws are made and they are made to be compulsory as well. These policies are just to give proper reliefs to the employees. These laws can be social and can help one to resolve several personal issues and working issues in the society.

You are required to follow some sets of rules and regulations which are according to laws and acts so that perfect level of justice can be established. Everyone can get maximum benefits from the resources being provided to them and there would be no injustice anywhere. If you find yourself in any kind of injustice for the work being done then there are a few ways in which you will be provided some kind of support for your social problems. Lawyers would be your support in these situations and they are the one who can get you out of those situations and this is one of the major benefits of using a lawyer. They have complete knowledge all social factors and there are many advantages which can be gained by the help of lawyers. They already knew that which step is correct or not and how you will protect yourself from any type of problem.

Most of the people were not aware of these social aspects and they have several problems in their lives. Drunken driving and divorce can be very severe problem for all and it will be very tough for one to get out of these problems unless they know that benefits of using a lawyer. To avoid any kind of similar situations you need lawyer who can give you proper advice about doing any sort of injustice and you will come to know the benefits of lawyers.

Reference: Criminal Defense > Defending Yourself with a Lawyer and How to Resolve Issues

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Obligations of Parties in Agency Contracts: the Company

In an agency contract, the company is required to provide the agent with the necessary information and documents needed to complete the required tasks. The company’s directions are dictated by the nature of the commission.

In general, a company must ensure that the agent, a direct employee, is legally well-treated, considering the best interests of both the company and the agent.

For example, the prices that an agent must give to potential distributors or re-salespeople exceed the expected company profits. It may be tempting for a foreign businessperson to conduct negotiations directly with the company, circumventing the agent and cutting the agent’s commission to reduce the cost of the transaction. This behavior is not only unlawful, but breaches the trust between the agent and the company.

The manufacturer must provide the agent with all the documentation related to the goods in question. For example, an import’s shipping documents are not sent directly to the buyer after the manufacturer receives the letter of credit. Instead, the agent receives the documents and finalizes the transaction on behalf of the manufacturer.

In business, information is an asset that could impact how a company secures a transaction. The company must provide the agent with several types of information:

  1. Information regarding the agency contract performance.The company should notify the agent if the anticipated commercial transactions are lower than the agent normally expects based on the nature of the product or the characteristics of the business.

    This may occur, for example, if the agent attracts a potential buyer for the manufacturer’s goods, but the manufacturer does not have the availability to fulfill the client’s commercial order. In this case, the profits of the transaction will be less that the amount expected by the agent, and the manufacturer has an obligation to inform the agent of the losses.

  2. Information regarding objections to the operation itself.The company should inform the agent if the contract’s terms are accepted or refused, or other unexecuted commercial transactions that the agent has produced for the company.

An agent’s career success is oftentimes measured by one’s performance and reputation. When an agent acts on behalf of a company for transactions, the agent becomes the face of the company to customers in the expansion area. Decisions regarding concluding negotiations, or even the operation itself, should be communicated to the client by the agent quickly to ensure that the agent remains a reputable and trustworthy businessperson.

Reference: Legal > The Pros and Cons of Having an Agent Abroad

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Settling Legal Matters

There are several ways of settling legal matters. The most common and trusted way of course is to move court. Moving court refers to the practice of a case being taken to a court of law for consideration by a judge of the court who will take the ultimate decision after the cases of both the involved parties have been presented fully by the two lawyers representing each party. In some legal systems, there is also a panel of jury. So if the case is going to be taken to court, then either of the parties involved will have to hire a lawyer. If a party does not have a lawyer, the court might appoint an attorney or lawyer to fight the case for that party.

Appointing or hiring a lawyer has its obvious advantages. The lawyer will be trained and educated in the field of law and will have a lot of knowledge about the court, the proceedings, the possible outcomes and of course the law. It is important to hire a lawyer who has expertise in the field that the case belongs to. For example, it is meaningless to hire a lawyer who is a specialist in labor laws for a murder case! That would be a complete disaster and waste of money. And speaking of money, most reputed and experienced lawyers charge hefty sums of money. It is equally meaningless to appoint a lawyer who has no experience or is just a novice, or one who has a dubious distinction of having lost more cases than won.

But apart from a few well-informed people, few know that there are also other ways of settling disputes, without even going to the court. This is called alternative dispute resolution or in short, ADR. There are several processes for ADR: mediation, arbitration, private judge, collaborative law, circuit courts, pre-trial settlement, bar associations of the district or bar or county, the attorney etc. These methods may sound radical but actually they are even better in most cases. However, for important cases that involve matters of life and death or huge amounts of money or property, it is always advisable to go for a lawyer only.

Mediation is the process in which a third person or party plays the role of a mediator. The mediator will not have any rights to taking any decisions, which will ultimately be taken by the parties themselves. But the mediator can facilitate the process of settlement being reached by helping each party assess the different aspects of the case and revise the goals accordingly. The process of arbitration is very similar to that of mediation, except that in this case, the final decision will be taken by the arbitrator. The two parties will generally have little scope of challenging that decision. A private judge or the attorney of either party can act as the judge of the court and reach a decision, to which either parties have to agree. In a pre-trial settlement, both parties agree to make some compromises and once again reach an agreement and rest the matter without taking it to the court.

Also see: Criminal > Tips to Select a Lawyer

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When Does a Defective Product Create a Cause of Action for Products Liability?

Products liability it is a specific area of tort law, which covers contract law previsions, and this matter is important to the general public. The creation of this field of law originated during the Industrial Revolution based on the breach of warranty of products. In essence, this is a breach of contract, but courts soon realized that this approach limited the liability of the manufacturer, negatively impacting consumers with less power in the contractual agreement.

This approach of tort law is based on simple principles, namely that products are bought by consumers to satisfy a certain need. The basic expectation of a consumer is the ability of the purchased product to meet one’s needs.

Two arguments are used by this doctrine to establish when a manufacturer has breached his or her responsibilities, triggering a products liability cause:

  • Implied warranty of merchantability: According to the rules of the Uniform Commercial Code 2-314, the base to determine a product’s viability is based on how the product is ordinarily used. In order to be acceptable, the product needs to be made of an appropriate, average quality. This means that the product fulfills consumer expectations, and does not cause any damage to consumers.
  • Negligence: On the other hand, the manufacturer has to take all possible precautions in order to prevent and to avoid physical harm resulting from the use of one’s products.

How can we determine if the courts will believe that a certain product, which allegedly harmed a consumer, was not the fault of the manufacturer? A manufacturer could use “the risk-utility test” to clarify one’s argument. If the costs of redesigning the product are ignored or if the manufacturer does not properly warn the consumer of a product’s possible risks, then the manufacturer will be held liable for any damages based on product negligence.

However, we can point out that if the product does not fulfill the expectations that a consumer would reasonably expect, the manufacturer should be responsible for the inefficiency of the product. Again, we need to address reasonableness as a potential factor in determining a claim. If a consumer buys a car, it can be reasonably assumed that one would use the car for transportation. In this case, if the car does not work, one would use the implied merchant warranty approach to recover damages. On the other hand, if a consumer goes to a restaurant and suffers food poisoning, and the food was poorly prepared, then the customer can expect to recover damages based on the negligence of the establishment.

There are three potential causes of wrongdoing that can be used as arguments in a products liability claim, and these can be avoided by improving the policies and practices of a production process. The next three blogs discuss these causes of action in detail, which are: manufacturing defects, design error and failure to warn the consumer.

Reference: Legal > Requirements for Punitive Damages

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Agency Contracts

An agency contract is one of the most complicated contracts to define in corporate law doctrine because it includes many commercial contracts that aids in the profitability and efficiency of a company. According to French doctrine, agency contract workers are considered independent from their employers because they do not work in the office proper, but in new sites nationally and internationally based on one’s competence.

A commercial agent is an intermediary that has been granted the authority by the manufacturer to negotiate the sale or the purchase of goods on the company’s behalf, or to negotiate and conclude such transactions.

The agent is both an independent worker and company controlled. The agent is an independent employee because the company does not control the agent’s schedule, or provide direct instructions on a regular basis. However, the agent is accountable financially for one’s actions and business conducted on behalf of the company.

As previously discussed, the agency contract employee surrenders more control to the manufacturer, yet performs in the organization’s favor. In agency contracts, the manufacturer determines the customer’s price because, according to agency contracts, the agent legally cannot participate in price fixing.

An agent, a direct employee of the corporation, is hired to connect the manufacturer with potential customers in the new location, where the agent is specialized and earns commission.

The agent reduces the risk of customer´s non-payment to the manufacturer. The customer pays the manufacturer directly who in turn pays the agent commission.

It is important to note that while the agent represents the manufacturer in agency contracts, an agent is a company employee, taking direction from the company and working in its interests. The agent will not personally fulfill the contract because the agent works for the company, not the manufacturer, regardless if the deal yields profits or losses.

When hiring an agent for international business, the applicable legislation for the agency contract is based on the foreign country’s laws. This leaves the manufacturer disadvantaged under foreign courts. To protect the company, it is vital that one understands the applicable rules in the state or country for business expansion, ensuring control of possible risks.

For example, if a company terminates an agency contract in Europe, the corporation would adhere to the conditions of the Directive (86/653/EEC) formed on December 18, 1986 [1]. Coordinated by EU Member States, the law relates to self-employed commercial agents and requires that a company compensates the agent comparable to the projected commission that the agent would have earned. For instance, the agent may have generated new customers or increased the volume of business with existing customers. This blog further discusses the unique features of agency contracts abroad.

References

[1] See http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:1986:382:0017:0021:EN:PDF.

Also See: Automobiles > The Exceptional Act of Automobiles

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When Is an Action Negligent?

To recognize a tort, a potential plaintiff needs to find several elements in order to identify if he or she has a case. First, one needs to prove that the defendant neglected a law/duty. One finds this law in rules and general standards because they are obligations that everyone is forced to observe. Second, it must be proved that the actor breached said duty, or in other words, did not obey the rule. Third, one must show that the breach of the duty was the proximate cause of the tort, meaning that the legal breach was the primary reason why the wrong occurred. And finally, there must be damage, which can be represented by the losses of the victim.

In order to understand products liability, we need to first understand two basic concepts of tort law that reveal some instances where public policy decides to allocate the loss expenses in any tort law case.

The first is negligence, which makes the actor liable only if one was not using proper care when performing the activity that caused the damage. And second, strict liability, which establishes that the amount of care an actor used when one’s action generated the damage does not matter. This is applicable if one’s actions when the damage was incurred are considered by the law as risky.

To understand negligence liability, consider your car. Anyone that has being involved in a car accident that was not one’s fault, yet still was liable for the car´s repair expenses, will understand the concept. It is only fair that if a person acts negligently, generating damages to a third party, one is held liable for that action, and, as a result of these actions, must pay for damages.

Every time that we face a negligent action, the basic issue that we need to understand is that the actor did not intend for the action to consequently harm anyone. If this was not the case, one would enter other field of tort law, governed by intentional torts. This blog will not discuss intentional torts because no manufacturer intentionally tries to cause damage to his consumers.

But how can we tell that we are facing a negligent act? There are several principles that help one establish liability in such cases. The most important law used by US courts is the reasonable person standard. This principle means that one will only be held liable if a reasonable person would have used a higher level of care.

When is an actor supposed to exercise any level of care? One has a duty to exercise reasonable care every time that one’s conduct might potentially cause physical harm to others. This means that any activity that involves any risk to a third party could potentially generate negligence liability under such rules.

In conclusion, for any tort claim, the question of whether the care exercised by the defendant meets reasonable person standards will always be determined by a jury. A jury’s members will be able to appropriately determine if a common person, under the same circumstances, would have acted as the defendant did.

Reference: Legal > Consumer’s Negligence and with Manufacturing Defects?

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Why Choose Firms that are Dealing in Recruiting Lawyers

When an organization is seeking to recruit its workers, there are specific legal matters that they have to meet. These legal procedures can be very tedious. The preparation towards recruitment dates are usually very involving and time consuming. The paperwork as well as the logistics is costly. In the past recruitment a company had no option but to take its precious time to organize old and new files in preparation for the recruitment process. The process being long enough meant beginning with the planning very early so that an organization would not find it difficult when the time for recruitment would begin.

Today, there are several companies whose specialization is to recruit workers for other companies and organizations. Such companies are having taken it upon themselves to see that the work or recruitment is properly conducted. Apart from the challenges of cost, these organizations come handy as a support to the others who may want professionals but are not finding it easy to get them on their own. Most of recruiting firms have based their work on professionalism considering credentials as the only major qualifying factors to anyone who is seeking a job with any company.

Although it can be easy for a recruiting firm to conduct recruitment services on behalf of other companies, it has never been so easy to recruit lawyers. Since lawyers deal with important legal maters of a nation, it is important that a firm that is recruiting lawyers be composed of people with legal backgrounds so that in the event of recruitment, they are able to justly recruit without doing common possible mistakes. In other words, firms that recruit lawyers should be composed of lawyers who are experts in their specific specializations.

Firms that recruit lawyers would be called legal recruiters. A legal recruiter is important in that it gives a good practical path for attorneys who are seeking legal positions. Firms that deals in recruiting lawyers are good since through them companies are able to get legal experts for positions in their firm. The benefit of having firms whose work is to recruit lawyers is for both the individuals and the companies that are seeking to feel a vacant or a newly created position. It gives the best platform for the two to get fair deals. Firms that are recruiting lawyers are there to offer advice and professional assistance to companies and people who are seeking such special services. The services of a recruiting firm can not be overlooked in the case of lawyers in that their valued services can not be taken for granted.

When you do a research, you will realize that there are so many firms which are recruiting lawyers. If you are a legal expert who is looking for a position, or that you are a company who is in need of a lawyer firms that deal in recruiting lawyers will offer you the most valued service. You can only devalue the importance of firms that deal in recruiting lawyers if you have never got in need of a legal expert for your company.

Reference: Legal Facts > Benefits of Using a Legal Recruiters

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Becoming a Lawyer Is Never an Easy Thing but the End Is Usually Rewarding

Law is a very glamorous profession in all parts of the world, where legal experts are considered with a lot of regard. No wonder most young people usually respond to a future career prospects questions with a positive hope to be a lawyer. Law is actually the third among the degrees in British universities which are mostly sought-after by students both local and international. Statistics indicate that over fourteen thousand students apply to study law in every year in the U.K. alone. It is also possible for any person with a good degree to take a conversion course to law and become a lawyer.

Law is not only a good profession, it is also a safe one according to Pickersgill, one of the recent graduates of law from renowned universities abroad. Most people who have studied law can agree without doubt that law is not just a simple course to pursue. Many law firms would want lawyers who are clear about what law actually entails, and those who are ready to run the tedious race of studying and serving in the profession. Unlike most courses that are studied in colleges, law is actually a very diverse and dynamic degree. College study is only a basis. In practice, situations that one meets is what would determine the kind of application that he would be giving to it as per the requirements of the law. Application of law is not easy either.

The general scope of legal matters is very wide. There are so many ways for law degree graduates to serve as legal experts. Somehow one can even go over the university system and as he or she works in a legal firm, he would take some of the important professional exams. However, this is never the best shortcut to think of.

When you think about legal education, you will notice that it is having two broad categories, which include the academic stage which is majorly examined differently without subjecting every student who is studying to take a common exam. Academic stage is usually a combination of up to four-year degree in law. The common exam is generally known by the name Common Professional Exam. This exam is majorly mandatory for them that are taking legal course to a higher level and who will later want to practice it. People who have taken different degrees can also be able to do the Common Professional Exam to become lawyers although they also have to take some long course meant for conversion to law profession.

Whether to become a solicitor or a barrister, the decision is easy to arrive at after one has done the common courses. To become a qualified barrister, it is a requirement that one must do a one year vocational course and thereafter a pupilage in a recognized legal training organization or company. For a solicitor, there is a course which is called a legal practice course and followed by two-year contract meant to train. After this is when a person can be admitted to practice as a solicitor.

Also see: Legal Facts > How to Become a Lawyer

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All about Litigation – The Work of Litigation Lawyers

Litigation is the process or the act of bringing a matter before the attention of a court. The court process of hearing a complaint or a legal process whether on a dispute or some kind of judicial contest qualify to be called litigation. People who bring matters before a court for hearing get involve in what is called litigation. The steps involved in litigation can lead to a trial before a court of law.

In most cases a person seeking litigation process usually press a demand that the person being complained about or the one alleged to commit particular offense should perform particular actions that can help to resolve the conflicts. If this does not happen the complainant might opt to begin a process of lawsuit. By doing this he, the complainant, will have to serve the attorneys with copies of summons and the complaint toward the particular defendant. He will also need to fill the court usually called a tribunal court or a civil court with complaint.

Litigation process is never a simple one. The complainant will be demanded to clearly state particular injuries that he or she is complaining about as he attribute them the person he is accusing who is also called the defendant. He should request damages in terms of money and the relief that is equitable to the level of injuries caused. If the complaints do not serve to bring resolution to the conflicts, then the attorneys should start the process of discovery. They must have the copies of the summons and complaints with them to aid them in the investigation process.

When the discovery is over, a court might ask the parties to attend conference for settling cases to find out if a resolution can be hatched before a court trial or if the court has to prevail. It is normally advisable for conflicting parties to find a compromise and possibly agree before a litigation process is started. This is because the litigation proceedings are usually long and tiresome. The court should be sort as a last resort other than the epicenter for all conflict resolutions.

The lawsuit process, if fairly conducted can lead to any result. Sometimes, the defendant may lose the case. In such a situation, he may ask his attorneys to through out the case. The accused in such a situation may also want to file a case against the defendant for spoiling his or her name. This is why before beginning the litigation process it is good to look for a resolution outside a court situation.

Litigation Lawyers

These are lawyers whose work is to help as defense lawyers in a court case. They are probably the only major line of defense in which clients would wish to have their legal cases handle in a court situation. Without litigation lawyers, it can be very easy to loose a case in court.

Reference: Litigation > Understanding Litigation

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