MBA 530 Legal and Ethical Dimensions of Strategic Management
Dennegar Liability
Kathleen Autry

Cambridge College

Good afternoon. My name is Katie Autry and, today, we'll explore the legal complexities surrounding Dennegar's liability in the case at hand. The court's decision hinges on a combination of agency principles and negligence, unraveling a compelling narrative. Let's dive into the key factors that underscore Dennegar's potential liability.

Agenda
Case Overview
Agency Relationship
Court Decision
Summary
References

Case Overview:
In the 2007 case of New Century Financial Services v. Dennegar, the dispute was over whether Dennegar was responsible for a $14,752.93 debt on an AT&T credit card that was opened by Mark Knutson in 2001 under Dennegar's name.
(FindLaw, n.d.).

Agency theory:
This provides a framework for understanding the principal-agent relationship, often used to analyze relationships where a principal delegates work to an agent (Mejia, 2019). The theory focuses on designing efficient contracts to govern these relationships and explores how information systems can be used to mitigate the agency problem. Critics argue it can be overly simplistic, but it offers unique contributions to understanding information systems, incentives, and risk in cooperative structures (Eisenhardt, 2018).

Authorization for the Credit Card

The court must consider whether Dennegar expressly applied for the credit card or authorized Knutson to do so.

Truth in Lending Act (TILA) Application
Dennegar's argument invoking the TILA was dismissed by the court.

Court Decision:
The court found Dennegar responsible for his agent's actions despite his poor memory and negligence (Fisher, n.d)..

In summary, Dennegar's liability is grounded in agency principles, his authorization or negligence, and the application of legal principles regarding a principal's responsibility for the conduct of an agent.

In summary, Dennegar's liability is grounded in agency principles, his authorization or negligence, and the application of legal principles regarding a principal's responsibility for the conduct of an agent.

References

• Eisenhardt, K. M. (1989). Agency theory: an assessment and review. Academy of Management Review, v14(n1).
• Mejia, S. (2019). Weeding Out Flawed Versions of Shareholder Primacy: A Reflection on the Moral Obligations That Carry Over from Principals to Agents. Business Ethics Quarterly, 29(4), 519-544. doi:10.1017/beq.2019.18
• NEW CENTURY FINANCIAL SERVICES, INC. v. LEE B. DENNEGAR. (n.d.). Justia Law. https://law.justia.com/cases/new-jersey/appellate-division-published/2007/a...
• FISHER, J.A.D. (n.d.). NEW CENTURY FINANCIAL SERVICES INC v. DENNEGAR. Retrieved from http://caselaw.findlaw.com/nj-superior-court-appellate-division/1263011.htm...