Multiple Choice - Agency
Fact Pattern 17-1 (Questions 1-3 apply)
Roz and Sara work as clerks in Trina’s Hot Clothes Shop. Trina withholds federal taxes from their pay, and controls the methods and details of the performance of their work. Roz and Sara are not authorized to modify the prices or other terms of a sale at the shop.
1. Refer to Fact Pattern 17-1. Trina authorizes Roz to sell clothes at remote locations at prices that Liz negotiates in those locations. With respect to sales at those locations, Roz is a. an independent contractor. b. not Trina’s agent or employee, or an independent contractor. c. Trina’s agent and employee. d. Trina’s employee only.
2. Refer to Fact Pattern 17-1. At the shop, Roz and Sara are a. independent contractors. b. not Trina’s agents or employees, or independent contractors. c. Trina’s agents and employees. d. Trina’s employees only.
3. Refer to Fact Pattern 17-1. Trina hires Unity Cleaning Company to clean the carpets of her shop. Trina gives Unity instructions as to what needs to be cleaned and when. Unity is a. an independent contractor. b. not Trina’s agent or employee, or an independent contractor. c. Trina’s agent and employee. d. Trina’s employee only.
4. Cody contracts with Drew to act as her agent in a fraudulent marketing scheme. Cody does not successfully complete the scheme. Drew can recover from Cody for a. breach of contract. b. breach of implied warranty. c. breach of the duty of performance. d. none of the above.
5. Irma retains Jerry as her authorized agent, unaware that Jerry is a minor. Jerry enters into a contract with Ken on Irma’s behalf. The contract is
a. binding on Irma.
b. binding on Jerry and Ken, but not Irma.
c. binding on Ken, but not Irma or Jerry.
d. void.
6. Jill introduces Kelly to her friends as “my associate.” Kelly purports to act as Jill’s agent in several business transactions with