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“Agency relationships are formed by the mutual consent of a principal and an agent.” (Cheeseman, 2007, p. 389).
“There are many examples of agency relationships. They include a salesperson who sells goods for a store, an executive who works for a corporation, a partner who acts on behalf of a partnership, an attorney who is hired to represent a client, a real estate broker who is employed to sell a house, and so on.” (Cheeseman, 2007, p. 389).
As an example: within my company, we must have the legal owner of a vehicle or property present in order to release the vehicle or property. If the legal owner is unable to be present, they must assign an agent to act in their behalf. This is done by the legal owner having a notarized statement issued to us authorizing another person to act in their behalf and retrieve their vehicle or property.
Cheeseman., H. R. (2007). The Legal Environment of Business and Online Commerce: Business Ethics, E-Commerce, Regulatory, and International Issues (5th ed.). Upper Saddle River, NJ: Pearson Education, Inc.
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