Exam 32: A: Agency Formation and Duties

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

Fact Pattern 32-1B Liz and Molly work as clerks in Nia's Dress Shop.Nia withholds federal taxes from their pay,and controls the methods and details of the performance of their work.Liz and Molly are not au?thorized to modify the prices or other terms of a sale at the shop. -Refer to Fact Pattern 32-1B.Nia hires O'Reilly's Carpet Company to clean the carpets of her shop.Nia gives O'Reilly's instructions as to what needs to be cleaned and when.O'Reilly's is

Through agents,a principal can conduct multiple business operations simultaneously.

Fact Pattern 32-1B Liz and Molly work as clerks in Nia's Dress Shop.Nia withholds federal taxes from their pay,and controls the methods and details of the performance of their work.Liz and Molly are not au?thorized to modify the prices or other terms of a sale at the shop. -Refer to Fact Pattern 32-1B.Nia authorizes Liz to sell clothes at remote lo?cations at prices that Liz negotiates in those locations.With respect to sales at those locations,Liz is

Jim agrees to act on Kit's behalf,subject to Kit's control,and Kit trusts Jim to so act.This describes a relationship between

An agent has a duty to follow all clearly stated instructions of the principal,lawful or not.

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

Carol agrees with Dede and other performers to sign contracts with promoters and others on the per?formers' behalf.Carol is

Ester is a lighting technician who hires out on a per-project basis to film and television production companies,as well as theatres and other venues that stage dramatic and musical performances.In this capacity,Ester is

Anything that an agent obtains by virtue of the agency relationship belongs to the principal.

A person must have contractual capacity to be a principal.

Rita is appointed as an agent for Superior Sales,Inc.The agency agree?ment is silent as to the level of sales that Rita is expected to achieve.She must

All agency relationships are based on contract.

KupaJava hires Lola to manage one of KupaJava's seven drive-through coffee stands.KupaJava agrees to pay Lola a salary,plus commission.KupaJava stipulates the standards that should be observed,the goals that should be attained,and the methods that should be used.Lola is most likely KupaJava's

A principal owes an agent a duty of obedience.

Only through its agents can a corporation function and enter into contracts.

Dizzy is not Edwina's agent but enters into a contract with Frida on Edwina's behalf.Edwina later contacts Frida to approve the contract.This is

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

Espresso Roast Company hires Forrest to work on Espresso's shipping dock,checking outgoing loads and dispatching Espresso's drivers.With respect to Forrest,Espresso is most likely

Macro Corporation and National Purchasing Company may create an agency agreement