Parker, a sports agent, represented David Toms, a professional golfer. Parker al
ID: 1153920 • Letter: P
Question
Parker, a sports agent, represented David Toms, a professional golfer. Parker also represented Shaun Micheel and other professional golfers. Parker received a 20 percent commission on any endorsement contracts signed by Toms and a 25 percent commission on endorsement contracts signed by Micheel. In 2003, Parker was in the middle of negotiations with Cleveland Golf on Toms’s behalf. After Micheel was the surprise winner at the PGA Championship, Parker convinced Toms that he should hold out for a more lucrative endorsement deal that was being offered by Cleveland, and he subsequently signed Micheel, instead of Toms, to the Cleveland Golf deal.
1. What agency relationship exists between Toms and Parker?
2. If an agency relationship exists, when was a fiduciary duty created and what sub-duties apply to this case? Explain.
3. Is Parker’s employer also liable for the actions of Parker? Why or why not?
Explanation / Answer
Answer:- If we look closely, Parker cannot be termed as an employee as he is full control of the manner the work has to be performed and things to be done thus this relationship can be termed as Independent Contractor Agency Relationship.
Answer:- When Tom and Micheel consented Parker to represented and when the same proposal of representing Tom and Micheel was accepted by Parker, there was an automatic formation of fiduciary duty. The different types of sub duties are care, Disclosure, Obedience, Loyalty and Accounting. In this case, the application of Loyalty and Disclosure will be applied as Parker tried to take advantage by signing Micheel rather Tom once PGA tour was won by Micheel despite having the negotiation with Tom first in place of Micheel.
Answer:- Yes, the employer of Parker can be held responsible for the actions of Parker only if he is considered as the employer of Parker and Parker was performing the duties as an employee