This topic contains a solution. Click here to go to the answer

Author Question: Agency Relationship. Evan Smith experienced a heart attack in the emergency room of Baptist Memorial ... (Read 102 times)

bobypop

  • Hero Member
  • *****
  • Posts: 539
Agency Relationship. Evan Smith experienced a heart attack in the emergency room of Baptist Memorial Hospital after being given a dose of penicillin for a sore throat. Smith sued the attending physician as well as the hospital. The hospital called itself a full-service hospital with emergency room facilities. Baptist Memorial did not consider the doctors to be its agents. For tax and accounting purposes the doctors were not treated as employees of the hospital. Based on this information, discuss whether the doctors who treated patients in the emergency room were agents of the hospital.

Question 2

A principal may designate someone to execute all transactions connected with running a business. Such a person is known as a special agent.
 a. True
  b. False
  Indicate whether the statement is true or false



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

cici

  • Sr. Member
  • ****
  • Posts: 325
Answer to Question 1

Agency relationship
The hospital was held liable because the hospital's acts, including providing emergency-room treatment, implied that the doctors were the hospital's agents. Thus, a relationship of principal-agent was found to exist despite the hospital's internal treatment of the doctors as nonemployees for tax and accounting purposes.

Answer to Question 2

FALSE




bobypop

  • Member
  • Posts: 539
Reply 2 on: Jun 24, 2018
Excellent


olderstudent

  • Member
  • Posts: 339
Reply 3 on: Yesterday
:D TYSM

 

Did you know?

Autoimmune diseases occur when the immune system destroys its own healthy tissues. When this occurs, white blood cells cannot distinguish between pathogens and normal cells.

Did you know?

Most strokes are caused when blood clots move to a blood vessel in the brain and block blood flow to that area. Thrombolytic therapy can be used to dissolve the clot quickly. If given within 3 hours of the first stroke symptoms, this therapy can help limit stroke damage and disability.

Did you know?

People with high total cholesterol have about two times the risk for heart disease as people with ideal levels.

Did you know?

It is believed that humans initially contracted crabs from gorillas about 3 million years ago from either sleeping in gorilla nests or eating the apes.

Did you know?

Long-term mental and physical effects from substance abuse include: paranoia, psychosis, immune deficiencies, and organ damage.

For a complete list of videos, visit our video library