New Century Financial Services Inc. v. Lee B. Dennegar

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• Background
• Mark Knutsen lived with Lee Dennegar (Fisher, n.d.).
• Knutsen managed all the household affairs.
• Dennegar gave Knutsen permission to sign his name to checks.

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• Background continued
• Knutsen was issued a credit card in Lee Dennegar's name.
• Knutsen died, leaving an unpaid balance.
• New Century Financial Services filed action against Dennegar for the outstanding balance.

Under what theory could Dennegar be liable for the charges?

Theory of Agency -
Agency theory is a principle that tries to understand the relationship between principals and their agents (Vaidya, n.d.).

Evidence of Agency Relationship

According to Mayer et al. (2017), the principal is liable if he authorized the agent to act on his behalf.

Two Types of Authority

Implied Authority - A manager's authority depends on the circumstances surrounding the situation.

Apparent Authority - According to Cornell Law School (n.d.), "Apparent authority is the power of an agent to act on the behalf of the principal, even though not expressly or impliedly granted."

Principal's Liability

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• Conclusion
• After reviewing all the facts in this case, the defendant, Lee Dennegar is found liable for the actions of his agent Mark Knutson.
• Dennigar is responsible to pay back New Century Financial Services the credit card balance of $14,752.93.

References

Cornell Law (n.d.). Apparent Authority. law.cornell.edu. https://www.lawcornell.edu/wex/apparent_authority

Fisher, J.A.D. (n.d.). NEW CENTURY FINANCIAL SERVICES v. DENNEGAR. Retrieved from https://caselaw.findlaw.com/nj-superior-court-appellate-division/1263011.ht...

Law Shelf. (n.d.). Business Law: The Principal-Agent Relationship. lawshelf.com. https://lawshelf.com/shortvideocontentview/business-law-the-principal-agent...

References Continued

Mayer, D., Warner, D., Siedel, G., Lieberman, J.K. (2017, March). Businee Law and the Legal Environment, v. 20.0 Flat World Knowledge. Chapter 38: Relationships between Principal and Agent

Mayer, Warner, D., Siedel, G., Lieberman, J.K. (2017, March ). Business Law and the Legal Environment, v. 2.0. Flat World Knowledge. Chapter 39: Liability of Principal and Agent: Termination of Agency

Vaidya, D. (n.d.). Agency Theory - What is It,Types, Principal & Agency, Examples. Wall Street Mojo. https://www.wallstreetmojo.com/agency-theory

References Continued

Week 4 : Lecture 2. (2023, June 13). Agency Relationships. [Video]. YouTube. https://youtu.be.7fTxjeWUaG8

Thank you for your attention.