Gale Encyclopedia of American Law Volume 2 P16 fully illuminates today's leading cases, major statutes, legal terms and concepts, notable persons involved with the law, important documents and more. Legal issues are fully discussed in easy-to-understand language, including such high-profile topics as the Americans with Disabilities Act, capital punishment, domestic violence, gay and lesbian rights, physician-assisted suicide and thousands more. | 138 BROKER A broker such as this man buying and selling stocks on the New York Stock Exchange trading floor acts as an intermediary in the contracting of any type of bargain. AP IMAGES In order to determine whether an individual is acting as a broker in a transaction the type of services that are performed must be examined. Types of Brokers There are several kinds of brokers each of whom deals in specific types of transactions. A bill-and-note broker negotiates the buying and selling of bills of exchange and promissory notes. A commercial or merchandise broker is an individual who works with buyers and sellers by negotiating between them in the buying and selling of goods without having personal custody of the property. This broker offers services on a commission basis to manufacturers as a sales representative for their product. Such a broker has no control or possession of the product that is sent directly to the buyer the broker merely acts as a middleperson in all transactions. An insurance broker acts as an intermediary between the insurer and the insured and is distinguishable from an insurance agent. While an insurance agent is employed by and represents a particular insurance company an insurance broker is a representative of the insured only. An insurance agent is bound by company rules and responsibilities whereas an insurance broker s only duty is to aid a client. This kind of broker owes no obligation to any company. real estate brokers or agents are hired to transact the buying and selling LEASE or rental of real property on a commission basis. They can also be involved with the purchase and sale of lands and the acquisition of mortgages for others. They may also counsel and advise people who wish to buy or sell real estate. Stockbrokers buy and sell shares in corporations and deal in corporation stock and in other securities. A stockbroker s functions are generally broader than those of other brokers. As more than a mere negotiator a stockbroker makes
