Principle and Agent

The basic principal and agent arrangement is formed when an individual or group delegates authority to another individual or group to carry out services or tasks. Principals and agents abound within society (Starling, 2008). Practically any organization within society forms principals and agents in order to carry out their business. The public (as an organization through government) creates public services such as police, fire departments, public health, sanitation, communications, etc. All act as agents to the public, who are the principal.
Fiduciary is a term that can be applied to principal and agent relationships. An example of a fiduciary is an attorney who represents a client. The attorney is supposed to act in the best interest of the client. While every agent should act in the best interest of the principal, it does not always occur. Interestingly, an agent can hire their own agents creating a new principal-agent relationship. This can lead to some rather twisty legal ramifications.
As individuals we hire lawyers, doctors, auto repair persons, plumbers, and even this University. While most private individuals, businesses and organizations operate quite independently of any oversight, many are regulated in order to protect the public at large. The government will often create an agency to oversee a regulated public or private sector.
The primary Federal agency for conducting and supporting medical research is the National Institutes of Health (NIH). It is a division of the U.S. Department of Health and Human Services. The NIH forges a path toward vital medical discoveries.   NIH scientists investigate disease prevention in order to improve people’s health and save lives. NIH research augments medicines, treatments and even cures for common and rare diseases (About NIH, 2009).
The NIH began in 1887 as the Laboratory of Hygiene at the Marine Hospital in Staten Island, NY. Currently, the NIH is composed of 27 diverse institutes. The NIH provides financial...