Exam 32: B: Agency Formation and Duties

Fact Pattern 32-1A Janet and Julie work at ABC Interiors.Janet is a designer who works with cli?ents of ABC on interior design projects.ABC closely supervises all of its design?ers,and dictates their work schedules.Julie works part-time in the evenings cleaning the offices. -Refer to Fact Pattern 32-1A.Janet is ABC's

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

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

Mackenzie,an agent for Lindsay,signs an agreement with Kirk on Lindsay's behalf but ne?glects to tell her that the agreement requires the payment of a certain tax.The government prosecutes Lindsay for failing to pay the tax.She is

Home Development Company employs llya to buy property for a future residential development.Ilya secretly buys some of the property and sells it to Home Development at a profit.Ilya has breached

Arnold is the chief executive officer of Beta Corporation.Arnold's re?sponsibilities include decisions on product development,marketing,and other significant business directions.Arnold is subject to the approval and oversight of Beta's board of directors.Carol is a Beta manager whose duties include the firm's day-to-day hiring,firing,purchasing,and sell?ing.Dave is a Beta salesperson,whose daily activities are con?trolled by Carol.Erin writes technical manuals for Beta products ac?cording to Arnold's instructions and subject to Beta's control,but has no dealings with Beta custom?ers or sup?pliers.Fred edits the manuals on a contract-per-manual basis and is not otherwise subject to Beta's control.Who is a principal? Who is an agent? Who is an employee? Who is an independent contractor?

Agency relationships exist only within employment relationships.

Pam is an agent for Refined Chemicals Corporation.Refined Chemicals owes Pam the duty of

Ozzy is an officer of Prudent Financial Corporation.Ozzy serves in a representative capacity for Prudent Financial's owners.With respect to binding Prudent Financial to contracts,Ozzy is

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

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

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?

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

Fact Pattern 32-1A Janet and Julie work at ABC Interiors.Janet is a designer who works with cli?ents of ABC on interior design projects.ABC closely supervises all of its design?ers,and dictates their work schedules.Julie works part-time in the evenings cleaning the offices. -Refer to Fact Pattern 32-1A.Julie is ABC's

Tri-state Financial Corporation hires Uri,a real estate agent,to locate investment properties for Tri-state.Uri learns of a warehouse available for $100,000,informs Tri-state,and makes an offer of $90,000 on Tri-state's instruction.The offer is rejected.Uri

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

A person cannot be both an independent contractor and an agent.

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

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

An agreement to form an agency relationship can be oral.