Disclosed principal is a principal where the identity is disclosed or revealed to a thrid party by the principal agent. The agent is not liable but the disclosed party on the third party contract is. An example of a disclosed principal is a person giving power of attorney to an agent to discuss with a bill collector how to settle the principals debts. They act on behalf of the principals best interest.
2. Undisclosed principal is when an agent acts on the behalf of the principal without the thrid party having this knowledge The agent seems to the third party to be acting for their best interest in the matter. An example of this is a large department store chain wants to purchase land. They know if they ask about price of the land they will be denied or will be given an outrageous price. They find and agent to speak with a thrid party about cost and keep the prinicipal's identity unknown. They ask as if acting for themself.
3. Partially disclosed principal is a prinicpal who has an agent where the agent discloses a principal exists but doesn't give the identity of the principal. An example of partially disclosed prinicpal is a real eastate investor who is well known hiring an agent to negotiate price on a strip of homes to purchase. The agent reveals they are acting on the behalf of a principal but do not
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If the principal has hired the agent with the express nature of not wanting identity revealed then this is of the most importance. The agent must also represent themself in the best interest of the principal and not make decisions that are out of their parameters to make. Deals cannot be made without prior consent of the principal. Not only is this an ethical obligation but a legal obligation as well. When representing someone else you must never let your own opinions or preferences interfere with the overall picture of why you are
In addition, by deciding not to inform the limited partners of Ed’s deceit, Andrea would be disregarding the American Institute of Certified Public Accountants Code of Professional Conduct in her being unreliable, dishonest and deceitful. Andrea has the responsibility of protecting her client, which involves encouraging the correction of financial statements in order to prevent suspicion during audits that could lead to fines and imprisonment.
“Agency relationships are formed by the mutual consent of a principal and an agent.” (Cheeseman, p.487) Our book goes on to cite the Restatement (Second) of Agency,
Would it violate the ABA Model Rules of Professional Conduct for Peter the Paralegal to perform the tasks assigned by his supervising attorney? Would Peter Paralegal be practicing UPL if he performed the work? Can the Honest Law Firm ethically represent both clients on unrelated matters without a conflict of interest?
Ethical Behaviour includes obeying the law and specific regulatory rules (CII, 2013), it is necessary that Paraplanners are aware of relevant laws and regulations including: the Financial Conduct Authority’s Principles for Business and Statements of Principle for Approved Persons (CII, 2013) and the Chartered Insurance Institute Code (CII’s code) (CII, 2014) as well as the Data Protection Act 1998 (Data Protection GOV.UK, 2013), Money Laundering Regulations (Office of Fair Trading, 2009) and the Financial Conduct Authority’s six Treating Customers Fairly Outcomes (FCA, 2013). Paraplanners must act with the highest ethical standards and integrity as well as acting in the best interests of each clients (CII, 2014). It is important that paraplanners are aware of the data protection act as clients have a right to expect complete confidentiality about their personal lives such as income and identity (CII, 2013). If paraplanner has a role to play in adviser charging, then paraplanner need to be aware of the anti-money laundering rules, a paraplanner is most likely to be in charge of implementing these rules (CII, 2013). Paraplanners are very much involved in the identification procedures for client, by making sure there are copies of “acceptable” identity kept on file, therefore the paraplanner needs to have received the appropriate training on verification and identification of clients (CII, 2013)
In order to understand the ethics in tax preparation and AICPA Code(s) of Professional Conduct rules, the essay will answer 4 questions based on estate tax case study. The discussion below highlights some of the application of ethics and principles in practice.
Honestly- means honest and trustworthy. Principle of good faith requires the CPA should be kept positive and honest in all professional relationships and business relationships, impartial, practical and realistic. In the Enron case, it is clear that Enron had serious financial fraud, certified public accountants Arthur Andersen and is clearly aware of the Enron fraud, but not eliminate implicated actively pointed out that instead of helping Enron's financial fraud conduct cover, deceive investors, and ultimately affect the functioning of the financial market policies, and a serious violation of the principle of good faith CPA professional ethics basic
Lastly, integrity comes down to taking the correct action when no one is around to monitor the behavior. Personal views can cloud an individual’s decision making process by looking to obtain dishonest gains through deceitful actions.
Individual must not be seeking an order of nondisclosure for one of the following offenses:
A conflict of interest may be described also as a conflict of duties or a conflict between interests or as a conflict between interest and duty. To act when they have a conflict of interest involves breaching their fiduciary duty to their client or former client. This is the basis of the conflict of interest problem and is stressed in many of the cases dealing with conflict of interest. There are four element of the fiduciary duty, duty of confidentiality, duty not to put their own or other people’s interests before their own client, duty not to misuse client’s money, and competent standard of
The ruler Otto controlled the church during his reign by making bishops and abbots royal princes and agents to him (425). The revival of the church however, began as the German empire weakened in the eleventh century (425). During this time, the Church declared its independence from the governments’ control by embracing a reform movement, The Cluny Reform Movement (425). The reform established at the Cluny monastary in France, aimed at “freeing the church from secular political influence and control” (425). The reformers were supported in their efforts by popular respect for the church as people admired clerics and monks (425). During this time, any man had the opportunity to become Pope; the Pope was supposed to be elected by the people and clergy of Rome (425). The church also promised a better life to peoples whose current was relatively harsh (425). The reformers condemned the state’s contemporary mixing of religions and secular institutions as well as the clergy’s subservience to royal authority (425). They taught that the Pope alone commanded the clergy and they demanded separa...
The duty of confidentiality refers to attorneys and their duty to keep their clients confidential information confidential. Clients must have some guarantee that lawyers will not divulge any of their confidential information so that they are able to seek early legal assistance and the duty of confidentiality allows them to do so. This duty also allows the client to feel secure when consulting with an attorney so that the attorney is able to gather all the necessary information needed to provide effective representation. Confidential information is all information that relates to the representation of a client no matter where the information comes from (Orlik, D. Ethics for the Legal Professional. Pp. 80). Even if the information is known publicly it is considered confidential to the attorney and their agents if it is information that relates to the representation of their client.
In the 1970’s, Ralph Nard coined the term whistleblower referring to when a referee blows a whistle to indicate an illegal or foul play. Oxford dictionaries define whistleblower as “a person who informs on a person or organization regarded as engaging in an unlawful or immoral activity.” This can be in either the government or corporations. The debate on whistleblowers continues to be pertinent in light of recent scandals. Many believe in the value of transparency, but disagree about the correct way to achieve it. This is why we created laws, such as the Whistleblower Act and the Espionage Act. The Whistleblower Act was put in place in order to protect “[A]ny disclosure of information” that a covered employee “reasonably believes” evidences “a violation of any law, rule, or ...
Although the movie Jerry Maguire was a cinematic representation of a sports agency and what they do, it included some good examples of the material we have covered in legal aspects. In chapter ten of Sport law: A managerial approach, it states an agency relationship has two components (Sharp et al, 2014). Manifestation by the principal and consent by the agent are the two components to the agency relationship. A client who wishes to be represented must communicate to the agent of their wishes and end the agreement with a written contract signed by both parties (Sharp et al, 2014).
An agency relationship is formed between two parties when one party (the agent) agrees to represent another party (the principal). Normally, all employees who deal with third parties are considered agents. Principal-Agent relationships are defined as the understanding that the agent will act for and on behalf of the principal. (Cheeseman) The agent assumes an obligation of loyalty to the principal that he will follow the principal’s instructions and will neither intentionally nor negligently act improperly in the performance of the act. An agent cannot take personal advantage of the business opportunities the agency position uncovers. A principal-agent relationship is fiduciary, meaning these obligations bring forth a fiduciary relationship of trust and confidence. As such, an agency relationship is governed by employment law.
It includes an employee or the organization and is deceptive to shareholders and investors. An organization can misrepresent its financial statements by exaggerating its income or resources, not recording costs and under-recording liabilities. A number of categories and sub-categories can be divided up for fraud. Some examples are consumer fraud, management fraud, employee embezzlement, Ponzi schemes and numerous