Exam 10: Agency Liability and Termination

Seed Packets, Inc., a garden seed company, requires its customers to pay by check. Taylor, a Seed Packets driver, tells customers that they can pay her with cash. When Seed Packets learns of Taylor's collections, it does not act to stop them. Taylor steals some of the cash. Under the doctrine of apparent authority, Seed Packets will most likely​

Apparent authority usually comes into existence through a principal's pattern of conduct over time.

An agent's implied authority cannot contradict his or her express authority.

Mirena serves in a representative capacity for Netanya. Orla is injured through Mirena's negligence. Netanya may be liable to Orla if Mirena's conduct occurred​

Implied authority is authority declared in clear, direct, definite terms.

Vicarious liability is indirect liability.

Fact Pattern 10-1 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 10-1.Liability to Désean for nonperformance of the contract may be imposed on​

Rachel is an agent for Sports Logo Merchandise, Inc. Rachel makes an innocent misrepresentation when entering into a contract on behalf of Sports Logo with Team Marketing & Sales Corporation. Sports Logo​

Garry drives a truck as an employee for Heavy Hauling, Inc. Garry would most likely be considered acting outside the scope of her employment if he​

Fact Pattern 10-1 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 10-1.Cuisine Catering is​

An employer is charged with the knowledge of any dangerous condition discovered by an employee and pertinent to the employment situation.

A principal is not normally liable for the tort of an agent committed within the scope of the agency or employment.