Exam 15: Agency

Jim,the manager of an apartment complex,rented an apartment to Cynthia.A few weeks later,Cynthia complained that the hot water did not work.Jim hired Cooper Plumbing to fix the hot water,but the job was not successful.A few days later,Cynthia moved out since she had no hot water.If she then sues the landlord and Jim for breach of contract:

Mohammad was an employee in the new product development department of Estay Inc.Mohammad was directly involved in the development of a new product that Estay intended to launch in six months.Estay took great care to keep information concerning the new product a secret.Ceries,Inc.,a competitor of Estay,persuaded Mohammad to leave Estay to direct Ceries' marketing department.Which statement is correct?

Chad,the production manager at Vikings Creations,was told by his supervisor to hire Jay,a 15-year-old,to operate an industrial machine.Hiring the 15-year-old violates the child labor laws.Chad:

Mike worked for Frank's Pizza as a driver.His duties consisted of making deliveries along a designated route.One day Mike decided to see his girlfriend,Jackie,who lived 50 miles out of his pizza route.While driving to his girlfriend's,Mike injured a pedestrian,Chuck.The accident was caused because of Mike's negligent operation of the delivery truck.Chuck is now suing both Mike and Frank's for personal injuries.Under the circumstances:

Ron is the business agent for Kansas Sunshine,a rock band.He is also the agent for another popular Midwestern rock group,City Sand.Ron negotiates a deal with a Kansas City promoter to have City Sand play after a professional football game.The promoter was willing to pay $250,000 for both groups to play after the game;however,Ron talked her into booking just City Sand for $175,000.Given his contract with City Sand,Ron made more money under this arrangement.Has Ron violated his fiduciary duty to Kansas Sunshine?

The bankruptcy of an agent automatically terminates an agency relationship.

Circus Pizza contracted with Art to run its birthday parties.Art's responsibilities included supervising the children and organizing the games.Circus did not investigate Art's background,which included a history of assaulting children.Art assaulted a 7-year-old girl in the restaurant's kitchen during a birthday party.Circus Pizza:

If Denise is hired to work as a cashier,she has the implied authority to do acts reasonably necessary to carry out her job.

An employer is generally liable for the intentional wrongful acts of his or her employees.

Rob agrees to act as an agent for Diane in selling her car.Diane has a duty of loyalty to Rob.

An agent may not engage in inappropriate behavior that reflects badly on the principal,but this rule applies only to conduct while the agent is on duty.

An agent may not engage in inappropriate behavior that reflects badly on the principal.This rule applies to conduct:

As a good neighbor,Lou gratuitously agreed to try to sell Haley's aquarium while she was on vacation.Since there is no consideration for this agreement,there can be no agency relationship between Lou and Haley.

Express authority can be created by:

Andrew has been hired to do some work for Rossi Enterprises.What factors would a court consider in determining if Andrew is an employee or an independent contractor? Why does the designation matter?

Alex worked for years for MegaCorp.During his employment with MegaCorp,he learned a great deal of confidential information and knew that if this information got into the hands of competitors or the general public,MegaCorp could suffer great business losses.Alex claims that he was wrongfully fired by MegaCorp and accordingly he believes he has no obligation to MegaCorp to keep any information he acquired with them as confidential.MegaCorp claims that Alex is under a continuing duty to keep confidential information secret,even though he is no longer with the company.Who is right? Why?

Chance is a traveling marketing representative for a publishing company.He is an independent contractor.One afternoon while driving to a meeting,he negligently runs a stop sign and causes an accident.Judy is injured.Judy can:

John is an agent for MegaCorp.He signed a contract on behalf of MegaCorp "John Miloni,as agent for MegaCorp" to purchase $250,000 worth of equipment from Big Machine Company (BMC).Is John liable to BMC if MegaCorp refuses to pay the bill?

Can a person work as an agent for two different people with conflicting interests?

An agent is not entitled to use confidential information gained from the agency relationship even after the agency relationship terminates.