Question

See not tes- Mul ICU UN LEC Dapat ads, but Icebox did not pass all of the payments on to Rain- bow. Icebox filed for bankruptcy. Can Rainbow recoup the unpaid amounts from Basic? Explain. (American Movie Clas- au- sics u. Rainbow Media Holdings, 508 Fed.Appx. 826 (10th Cir. elix 2013) (See Scope of Agent's Authority.) The For a sample answer to Problem 33-6, go to Appendix E at to the end of this text. 33-7. Agent's Authority. Terry Holden's stepmother, ani Rosie, was diagnosed with amyotrophic lateral sclerosis (ALS), and Terry's wife, Susan, became Rosie's primary caregiver. the Rosie executed a durable power of attorney appointing Susan o is as her agent. Susan opened a joint bank account with Rosie at Bank of America, depositing $9,643.62 of Rosie's funds. Suf Susan used some of the money to pay for "household expenses to keep us going while we were taking care of her.” Rosie his died three months later. Terry's father, Charles, as executor of eled Rosie's estate, filed a petition in a Texas state court against the Susan for an accounting. What general duty did Susan owe -. It Rosie as her agent? What does an agent's duty of account Halling require? Did Susan breach either of these duties? Explain. ucci

Answer 1

• Susan owed Rosie a fiduciary duty as her agent under the power of attorney.
• Agent's duties :

1. To act in the best interests of the principal
2. No conflict of interest
3. No secret profit
4. Duty of confidentiality
5. Duty to use care and skill
6. Duty to account
7. Duty not to delegate
8. Duty of obedience

• Susan breached this fiduciary duty owed to Rosie because she failed to:

a. Timely inform the principal of all actions taken pursuant to the power of attorney;

b. Maintain records of all transactions on the agent;

c. Account to the principal; and

d. Not engage in self-dealing.