Exam 23: Agency Relationships in Business

Fact Pattern 23-1​ Nadya and Owen work at Purified Water Company. Nadya is a sales representative who works with Purified's customers, including restaurants, grocery stores, and other businesses, as well as individual consumers. Purified closely supervises all of its sales reps, and dictates their schedules. Owen is an engineer who works in Purified's water treatment plant. -Refer to Fact Pattern 23-1. With respect to third parties, Owen is Purified’s

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.

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

Orina hires Padget, a real estate broker, to sell her oceanfront house. The house is destroyed in a hurricane before being sold. Padget is​

Churchy hires Danielle, a real estate broker, to act as his agent to sell his land for $150,000. Oil is discovered beneath the land, causing its market value to increase considerably. The agency agreement is likely​

Vida is a purchasing agent for Wholesome Foods with the authority to buy grain up to a certain quantity. After the grain is bought, the agency relationship terminates​

The relationship between a principal and an independent contractor cannot involve an agency relationship.

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

Fact Pattern 23-2​ Berry indicates that she is acting as an agent on behalf of an unidentified client-Cuisine Catering, LLC-when she enters into a contract with Désean. -Refer to Fact Pattern 23-2. Cuisine Catering is​

Employment laws apply only to the employer-employee relationship.

A principal does not have the right to control an agent's conduct in matters entrusted to the agent.

Independent contractors have no control over the details of their work performance.