Exam 32: Agency Formation and Duties

Sela agrees to act on Thom's behalf,subject to Thom's control,and Thom trusts Sela to so act.They set out the terms in a written document,which they both sign.This is

Genetic Seed Company hires Howie to work on Genetic's shipping dock,accepting deliveries and dealing with other companies' drivers.With respect to Genetic,Howie is most likely

Louis,a certified public accountant and an investor,and Maria,an in?surance salesperson and a realtor,may create an agency relationship for

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

A principal owes his or her agent a duty to act in good faith.

An agreement to form an agency relationship can be oral.

When an agent fails to perform his or her duties,liability for breach of contract may result.

Delicious Coffee Company hires Elton to sell Delicious's products in a certain area.Delicious agrees to pay Elton a salary,plus commission,for a trial period.They also agree that Elton can sell using any methods and during any hours that seem appropriate.The key factor in whether Elton is Delicious's employee is

Glen is an agent for Hi-Flite,Inc.On Hi-Flite's behalf and at its request,Glen pays Ian for certain plane maintenance and repair serv?ices.Glen's right to obtain the amount of those payments from Hi-Flite arises under the principal's duty of

When the principal-agent relationship is not contractual,the agent has no right to specific performance.

Diego is a truck driver for Entertainment Supplies Company (ESC).Diego does exactly what ESC tells him.Diego is

An employee may not act in the capacity of an agent.

Bob,a salesperson at a Carpets Galore store,tells Dita,a customer,"Buy your carpet here,and I'll install it for half of what the store would charge." Dita buys the carpet,which Bob in?stalls for half the store's price.Bob keeps the money.Bob has breached

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

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

Ella agrees to act as Fab's agent in settlement negotiations with Global In?surance Company.Ella works out a profitable compromise for Fab,but deposits the company's payment in her own account and refuses to give it to Fab.Fab files a suit against Ella.What remedies might the court impose?

Rangle contracts with Siena to buy a certain horse for her.Rangle makes a deal with Timberline Stables,the owner of the horse,and makes a down payment.Siena fails to pay the rest of the price.Timberline sues Rangle for breach of contract.His right to hold Siena liable for any damages that he has to pay is the right of

Clearview 3D HD TV Company grants its agent Blossom an exclusive terri?tory in which to sell Clearview products.Clearview cannot compete with Blossom in that territory under the principal's duty of

Agency relationships exist only within employment relationships.

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