Exam 25: Agency Formation and Duties

Home Enterprises employs Itzak to buy property for a possible residential development.Itzak secretly buys some of the property and sells it to Home Enterprises at a profit.Itzak has breached

Agency relationships do not permeate the business world.

Yoshi contracts with Zach to buy a certain pub,Aficionado's,for Yoshi,who asks Zach not to reveal her identity.Zach makes a deal with Burcet,the owner of the pub,and makes a down payment.Yoshi fails to pay the rest of the price,and does not pay Zach for his services.Does Zach have any recourse against Yoshi If so,on what basis and to what extent

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

Sybil agrees with Tyrone and other professional athletes to sign contracts with promoters and others on the athletes' behalf.Sybil is

An agency agreement can be implied by conduct.

Bailey is an agent for Culinary Delites Company.In the course of Bailey's performance for Culinary Delites,she pays Drivers' Repair Service for certain vehicle maintenance and repair work.Bailey's right to obtain the amount of the payments from Culinary Delites arises under the principal's duty of

Employers can avoid certain tax liabilities by hiring independent contractors instead of employees.

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."

Anything that an agent obtains by virtue of the employment or agency relationship is his or hers to keep.

Ingmar asks Jessie to contract with Jessie's high school classmates to babysit Ingmar's new baby.Jessie orally agrees to do so.This is

Fact Pattern 25-1B (Questions B4-B6 apply) Margo works as an administrator and receptionist in Neon's Garage Door Store.Neon withholds federal taxes from Margo's pay,and controls the methods and details of the performance of her work.Margo is not au?thorized to modify the prices or other terms of a sale at the store.Omar installs Neon's Garage Door products at the buyers' locations. -Refer to Fact Pattern 25-1B.At the shop,Margo is

Ratification involves a question of intent,and intent can be expressed only by words.

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

Donato is Equipment Repair Service Company's chief executive officer.On Equipment Repair's behalf,Donato solicits business,hires and fires workers,and handles finances.Equipment Repair pays Donato varying amounts,depending on his "needs." Donato is most likely

Elaine owns the Fabric & Yarn store.Goldie is a salesperson in the store.When Goldie makes a sale to Heather,the sale is binding on

Build-It Construction Company contracts with Classic Beverage Corporation to build Classic Beverage's corporate headquarters.Build-It Construction contracts with Dependable Tools & Materials Inc.for construction supplies but refuses to pick up the order.Meanwhile,Classic Beverage hires Elmo,a certified public accountant,to work in its cost-accounting division as an employee,with no authority to hire or supervise others.Elmo asks Fayette,an outside experienced accountant,to advise him on certain accounting procedures but fails to pay Fayette for the service.Classic Beverage also contracts with Gloria,a salesperson,to solicit orders for its products in a designated territory.Gloria obtains an order from Highpoint Concessions,Inc.,which is assured the order will be filled soon.But Gloria does not follow through with the paperwork and fails to submit the order to Classic Beverage.Highpoint Concessions suffers a loss.Dependable Tools,Fayette,and Highpoint Concessions claim Classic Beverage is liable under agency law.Discuss fully whether an agency relationship was created by Classic Beverage with Build-It Construction,Elmo,or Gloria.

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

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

A person must have contractual capacity to be an agent.