Exam 32: Agency Formation and Duties

Rondi holds herself out as possessing special accounting skills. As an agent, she must exercise the degree of skill or care expected of​

Home-Baked Bread Company hires Ike to sell the company's products in a certain area. Home-Baked Bread agrees to pay Ike a salary, plus commission, for a trial period. They also agree that Ike can sell using any methods and during any hours that seem appropriate. The key factor in whether Ike is Home-Baked Bread's employee is​

Employment laws apply to the employer-independent contractor relationship.

An agent is not authorized to act instead of a principal in doing business with third parties.

An agency relationship created for an illegal purpose is enforceable.

An agency by estoppel arises when the principal's actions have created the appearance of an agency that does not in fact exist.

Lorena is appointed as an agent for Milled Grains, Inc. The agency agreement is silent as to the level of sales that Lorena is expected to achieve. She must​

Denny, a certified public accountant and an investor, and Ethel, an insurance salesperson and a realtor, may create an agency relationship for​

Normally, employees who deal with third parties are deemed to be agents.​

Dakota Energy Company employs Evan to negotiate the purchase of mineral rights for future mining projects. Evan secretly buys some of the property and sells it to Dakota at a profit. Evan has breached​

Jill agrees to act on Kit's behalf, subject to Kit's control, and Kit trusts Jill to so act. This describes a relationship between​

Whether a worker is an employee or an independent contractor has no effect on the employer's liability for the worker's actions.

A principal has the right to control an agent's conduct in matters entrusted to the agent.​

Roberta introduces Steve to her friends as "my associate." Steve purports to act as Roberta's agent in several business transactions with those friends. If Roberta is liable for Steve's actions, it will be because their relationship is​

If work is usually done under the employer's direction, this indicates independent-contractor status.

Global Games Corporation employs Heidi as an agent. Global Games gives Heidi an exclusive territory in which to sell its products. Global Games cannot compete with Heidi in that territory under the duty of​

Remedies of the agent for breach of duty by the principal follow normal contract and tort remedies.

An agent's deviation from the lawful clearly stated instructions of the principal is a violation of the duty of obedience.

Largo is an agent for MaryElise. MaryElise gives Largo clear instructions to enter into contracts on her behalf only on Mondays, Wednesdays, or Fridays. Largo enters into a contract on her behalf on Tuesday. Largo has breached​

Through agents, a principal can conduct more than one business operation at a time.