Exam 31: Agency Formation and Duties

Elle is an agent for Fine Cosmetics, Inc. Elle owes Fine Cosmetics the duty of

National Computer Corporation (NCC) employs Cynthia as an agent. NCC gives her an exclusive territory in which to sell NCC products. NCC cannot compete with her in that territory under the duty of

Bubbly Soda Company hires Carlo to work on Bubbly's shipping dock, checking outgoing loads and dispatching Bubbly's drivers. With respect to Carlo, Bubbly is most likely

Fact Pattern 31-1A 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 31-1A. Janet is ABC's

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

Prospective Enterprises (PE) employs Quinn to buy property for a possible com?mercial development. Quinn secretly buys some of the property and sells it to PE at a profit. Quinn has breached

The Occupational Safety and Health Agency issues regulations to which Precision Machine Company and other businesses are subject. This describes a relationship between

An officer of a corporation cannot possess the power to bind the corporation.

Beta Distribution Company grants its agent Cathy an exclusive terri?tory in which to sell Beta products. Beta cannot compete with Cathy in that territory under the principal's duty of

An independent contractor always acts in the capacity of an agent.

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

A corporate officer is not an agent for the corporation.

A principal may deny the existence of an agency relationship whenever it suits his or her purpose.

Herschel contracts with Ivy to buy a certain coffee shop, Java Jive, for Ivy, who asks Herschel not to reveal her identity. Herschel makes a deal with Kendal, the owner of the restaurant, and makes a down payment. Ivy fails to pay the rest of the price, and does not pay Herschel for his services. Does Herschel have any recourse against Ivy? If so, on what basis and to what extent?

United Sales Corporation hires Victor to act as its agent. United's right not to perform a contract entered into by Victor, if Victor breaches their agency agreement, is the right of

An agency relationship cannot exist in the absence of a formal agreement.

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

An independent contractor is an employer who controls his or her agent's performance.

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

Information acquired through an agency relationship is confidential.