Exam 32: Agency Formation and Duties

High Plains Distribution Inc. hires Inez to work on its shipping dock, accepting deliveries, dispatching trucks, and dealing with customers and other companies' drivers. With respect to High Plains, Inez is most likely​

Spicy Wonder Hot Dog Vendors, Inc., grants its agent Teona an exclusive territory in which to sell Spicy Wonder Hot Dog products. Spicy Wonder Hot Dog cannot compete with Teona in that territory under the principal's duty of​

An agent's duties to the principal are implied from the agency relationship only if the identity of the principal is disclosed to a third party.

The agent has the right to a safe working environment.

Agency relationships can exist between employers and independent contractors.

Employers cannot avoid any tax liabilities by hiring independent contractors instead of employees.

Business Travelers Hotel Corporation hires Conrad, a real estate agent, to locate hotel properties for the company. Conrad learns of a hotel available for $3.2 million, informs Business Travelers, and makes an offer of $2.9 million on Business Travelers's instruction. The offer is rejected. Conrad​

An agent can represent two principals in the same transaction as long as neither of them knows about it.

The relationship between an employer and an employee cannot involve an agency relationship.

Agency relationships are not crucial in the business world.​

An agency relationship is enforceable even if it is created for a purpose that is contrary to public policy.

Under the law of agency, notice to the agent is notice to the principal.

Quince owns a used-car lot where Ray works as a salesperson. Quince tells Ron not to make any warranties for the cars. To make a sale to Sylvia, however, Ron adds a 50,000-mile warranty. Later, Sylvia sues Quince for breach of warranty. Quince's right to hold Ron liable for any damages Quince has to pay Sylvia is the right of​

Independent contractors control the details of their work performance.

Any copyrighted work created by an employee within the scope of his or her employment at the request of the employer is a "work for hire."

A familiar example of an agent is the shareholder of a corporation.

Investment Holdings Corporation hires Jeri, a business appraiser, to locate investment possibilities for Investment Holdings. Jeri learns of a salsa and hot sauce manufacturing company available for a reasonable price, but neglects to tell Investment Holdings. Most likely, Jeri​

Bernard is an expert on exotic flowers. Custom Floral Arrangements, Inc., hires Bernard to order exotic flowers for its arrangements. Bernard does not examine the quality of the flowers he orders on behalf of Custom Floral. Bernard has breached​

Rosario is a chef and caterer who hires out on a per-project basis to companies with on-location work sites, as well as to hosts of banquets, corporate meetings, concerts, weddings, and other events. In this capacity, Rosario is​

Agency relationships normally are consensual.