Agency Law. Chapter 4. Agency Law. What is an agent? Any individual who represents a second individual or entity in negotiations with a third individual or entity. What is agency law?
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If the agent does not have the authority to act on behalf of the principal or exceeds the authority she was given by the principal, the agent’s actions cannot bind the principal and the principal cannot be held liable for the acts of the agent.
An agent acts with actual authority when the agent reasonably believes that his actions are within the scope of authority given to him by the principal.
Any written or oral communication that grants the agent authority to perform an act
Example – In NFL Players’ Association’s standard representation agreement, the agent’s express job is to “represent, advise, counsel, and assist Player in the negotiation, execution, and enforcement of his playing contract”
Refers to the agent’s authority and ability to perform incidental acts that are reasonably necessary to accomplish the agent’s express responsibilities as provided in the agency agreement
Must be consistent with the express authority granted within the agency agreement
When determining whether an agent acted with implied authority, courts will look at the agent’s reasonable understanding at the time the agent took action. If court finds the agent’s interpretation of the agency relationship was unreasonable and the agent lacked authority to perform an act, the improper act falls outside the scope of the agent’s authority
Arises out of a situation where, because of the behavior of the principal, a third party may believe that the agent is acting with actual authority
In other words, the principal created an appearance of authority through conduct or behavior that misled the third party into reasonably believing that the agent had the authority to act on behalf of the principal.
Under NCAA rules, an eligible student-athlete cannot receive benefits from or enter into a verbal or written agreement with an agent even if the agreement is related to working with the athlete after his eligibility to participate has expired
Who gets hurt when an agent and/or athlete violate this regulation?
Requires annual registration (application and fee are transferable to all states recognizing Act)
Defines student-athlete as: “an individual who engages in, is eligible to engage in, or may be eligible in the future to engage in, any intercollegiate sport”
Provides that athlete agents who sign contracts with student-athletes must provide notice to the particular university and must make clear to the student-athletes that the agency agreement may affect their eligibility to participate in athletics while in university
Provides civil remedies for institutions when agents and athletes sign these contracts and the school eventually suffers NCAA sanctions
Enter into only Standard Representation Agreement with Player
Submit all contracts between player and team to union for review
Submit itemized statement of all fees charged
Allow for audits
Comply with all applicable state and federal regulations
“The maximum fee which may be charged or collected by a Contract Advisor shall be three percent (3%) of the ‘compensation’ . . . received by the player in each playing season covered by the contract negotiated by the Contract Advisor”