Freud Fallis, an Organisational Psychologist with the Australian Tax Department

Multiple Choice

Freud Fallis, an organisational psychologist with the Australian Tax Department ('ATD') , has long been complaining to management about the drabness of the ATD's offices and its detrimental effect on staff morale.Weary of his persistence in championing unorthodox ideas, ATD's management decide that Freud's contract will not be renewed.After this decision is communicated to Freud, as a 'last hurrah' and without express authority, he moves ahead his plans to engage the producers of a 60-minute makeover television show to revamp the ATD's offices on a weekend.To Freud's surprise the ATD's management is not happy with the erotic sculptures, strobe lighting and psychedelic wallpaper the decorators use.Which of the following would mean that the ATD is not liable to pay the show's producers?

A) The producers of the show did not have actual or implied authority to transform the offices of the tax department.
B) It was not reasonable for the makeover show's producers to assume that Freud had authority to make such outlandish renovations, and at the time they were engaged, they did not believe that he had such authority.
C) Freud was not an independent contractor but was an employee of the ATD.
D) The ATD was not intending to renew Freud's contract and thus could not have authorised the renovations.