Agent
From Supply Chain Management Encyclopedia
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* A broker is an individual or party (brokerage firm) that arranges transactions between a buyer and a seller, and gets a commission when the deal is executed. A broker who also acts as a seller or as a buyer becomes a principal party to the deal. Distinguish agent: one who acts on behalf of a principal <ref> Spiro, R.L., Stanton, W.J., Rich, G.A.. Management of a sales force . 12th ed. Boston: McGraw-Hill/Irwin, 2003 </ref>. | * A broker is an individual or party (brokerage firm) that arranges transactions between a buyer and a seller, and gets a commission when the deal is executed. A broker who also acts as a seller or as a buyer becomes a principal party to the deal. Distinguish agent: one who acts on behalf of a principal <ref> Spiro, R.L., Stanton, W.J., Rich, G.A.. Management of a sales force . 12th ed. Boston: McGraw-Hill/Irwin, 2003 </ref>. | ||
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- | | '''Commission agent | + | | '''Commission agent *)'''|| |
- | * | + | * '''COL''' - The agent whom the British exporter appoints in an overseas country may be classified by the agent's own law as a commissioner. |
+ | * CIL - Most European continental countries and other legal systems founded on the civil law recognize concessionaires as a special class of self-employed commercial agents<ref> The Civil Code of the Russian Federation - Russian Civil Law – Ch.49, Arts. 971-979; Ch.51, Arts.990-1004 - accessed 15/07/2011 </ref>. | ||
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- | * | + | * A ''commissionaire'' is a person who internally, i.e. in his relation-hip to his principal, is an agent but externally, i.e. in his relationship to the third party, is a seller or buyer in his own name. Where a commissioner has acted for the principal, no privity of contract can be constituted between the principal and the third party. |
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| '''Customer's Perception '''|| | | '''Customer's Perception '''|| | ||
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|'''LEGEND:''' | |'''LEGEND:''' | ||
- | |colspan="3"|'''CIL''' = Civil Law; '''COL''' = Common Law; | + | |colspan="3"|'''CIL''' = Civil Law; '''COL''' = Common Law; '''*)''' ''Commission agent'' ('''COL''') has not the same meaning as self-employed ''commercial agents'' ('''CIL'''); '''****)''' "Institutionally-competitive method of international operations" term has to display two facts: 1) there is a special institute (commodity exchange, auction, tender committee, etc.) involved into trade transactions; 2) item prices are quoted as a result of buyers' price offering competition. |
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Revision as of 12:29, 10 July 2012
Russian: Агент
Agent is a person or business authorized to act on another's behalf. To understand better the dissimilarities between Agent and Principal (while these dissimilarities are considered as negligible in USA) one could use the following check-list [1] (Table 1). An agent is usually a small firm or an individual located in the importing country who acts as a manufacturer's (seller's) representative for the exporter. Therefore an agent does not take title to the goods it sells but earns a commission on the sales it makes. In its relationship with an agent, the exporter is known as the Principal. An agent often has several principals and generally sells a group of complementary products rather than products that compete directly with one another. The agent will handle all of the sales functions for the exporter, from the initial prospecting for customers to the close. The agent is usually given varying support by the exporter: Some exporters provide only the bare minimum of a sales brochure and a price list, while the more experienced exporters provide training on the product's characteristics, analysis on the competitors' products, information on the sales and service philosophy of the company, sales support in the form of samples, catalogs (translated or adapted), trade advertising, and financial support to attend trade shows, technical visits by corporate engineers, participation in sales incentive programs, and so on [2].
Contents |
Types of Agents
There are three kinds of agent which are classified by the law, the first is the universal agent. A universal agent can do most things for the principal in the principle agent relationship. The universal agent may be appointed by power of attorney. The power of attorney is the deed signed by the principal and witnessed by the principal. The donor of the power gives the the agent or the attorney the power or the authority to act on behalf of the principal. For example, the principal may be traveling or living overseas or maybe in hospital or have limited mobility. The power of attorney may be general or it may be limited to a particular area, a particular purpose such as the sale of a particular property or a period of time such as one year or until someone returns from overseas. The power of attorney can be stopped like any other agency appointment[3].
The other types of an agency type relationship include the general agent which has less power than universal agent. The general agent can make contracts and do things for the principal, this one may do things which are normal in the ordinary business of the principal. For example, the agent may be employed to manage all the principal's shops or may be employed as a traveling representative or may be employed to do an act which is within the normal scope of the agencies own business. The final type of agent is a special agent which is limited and has even more narrowly defined powers than universal and the general agent. The special agent is appointed for a specific purpose or to do something which is not within the course of the agents than usual business. For example, a real estate agent may be appointed a special agent not to sell a house but to sell furniture in the house, because selling furniture is outside the ordinary business of real estate agent. Many occupations including accountants and travel agents fit in this model[4]. Some types of agents are presented in the Table 2 below.
Table 1. Who am I? - Check-List
Comparative Factors | I am Supplyer’s Distributor if….. | I am Principal’s Agent if….. |
Risk |
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Customers Belongingness |
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Compensation |
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Sales Amount Information |
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Pricing Policy |
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Sales Policy |
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Authority |
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Customer's Perception |
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Contacts wits Customers |
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Non-Payment |
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Ad and Promo Costs |
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Ad and Promo Costs |
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Table 2. Main Types of Agents
Name of agent | DEFINITION | COMMENTS, CASES, RESOURCES, AND OTHER RELEVANT MISCELLANEOUS | |
General agent |
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Agent of necessity |
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Del Credere agent |
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Factor |
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Special Agent |
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Broker |
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Commission agent *) |
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Customer's Perception |
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Contacts wits Customers |
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Non-Payment |
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Ad and Promo Costs |
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Ad and Promo Costs |
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LEGEND: | CIL = Civil Law; COL = Common Law; *) Commission agent (COL) has not the same meaning as self-employed commercial agents (CIL); ****) "Institutionally-competitive method of international operations" term has to display two facts: 1) there is a special institute (commodity exchange, auction, tender committee, etc.) involved into trade transactions; 2) item prices are quoted as a result of buyers' price offering competition. |
References
- ↑ Auerbach, R. Am I an agent or a distributor? - www.marketnewzealand.com/auerbach -accessed 01/27/2007
- ↑ David, P., Stewart, R. International Logistics: The Management of International Trade Operations - Thomson: Mason, Ohio. 2007. – Sec.4-3a.
- ↑ Coleman, D.A. What Are the Different Types of Agents in Business? - http://ezinearticles.com/?What-Are-the-Different-Types-of-Agents-in-Business?&id=5943706 - accessed 05/10/2012
- ↑ ibid
- ↑ http://www.vanuatu.usp.ac.fj/courses/LA313_Commercial_Law/Cases/Swiss_Air_v_Palmer.html - accessed 05/10/2012
- ↑ - http://www.vanuatu.usp.ac.fj/courses/LA313_Commercial_Law/Cases/China_Pacific_v_Food_Corporation.html - accessed 05/10/2012
- ↑ http://www.vanuatu.usp.ac.fj/courses/LA313_Commercial_Law/Cases/Churchill_v_Goddard.html - accessed 05/10/2012
- ↑ http://business.yourdictionary.com/special-agent - accessed 05/10/2012
- ↑ Spiro, R.L., Stanton, W.J., Rich, G.A.. Management of a sales force . 12th ed. Boston: McGraw-Hill/Irwin, 2003
- ↑ The Civil Code of the Russian Federation - Russian Civil Law – Ch.49, Arts. 971-979; Ch.51, Arts.990-1004 - accessed 15/07/2011