Exam 5: Agency

Sam is an employee of Binky,Inc.While delivering a truckload of binkies to a local retailer,Sam decided to stop at his bank to deposit his paycheck.The bank is three blocks from the retailer and it takes approximately 15 minutes to deposit a check.While Sam is in the bank,the truck rolled down the street because Sam negligently forgot to set the parking brake.The truck crashed through the window of Market,killing two people and causing $500,000 in damage.Discuss the issues involved in determining whether Binky,Inc.is liable for the damages at issue.If Binky,Inc.is liable,can it recover against Sam for the damages?

Agency relationships can be created without a formal agreement.