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Chapter 32 Agency Formation & Duties

Chapter 32 Agency Formation & Duties

Q Read and Answer the case on the top of Page 619. Read and answer Business Scenario 32-1 on page 620

Q Page 619 1. Who is the principal and who is the agent in this scenario? By which method was an agency relationship formed between Scott and Blatt? 2. What facts would the court consider most important in determining whether Scott was an employee or an independent contractor?3. How would the court most likely rule on Scott’s employee status? Why?

Q 4. Which of the four duties that Blatt owed Scott in their agency relationship has probably been breached?Page 620 Business Scenario 32-1 Discuss fully whether an agency was in existence at the time the contract for the rare coin was made.

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In this scenario, the principal is James Blatt as Marilyn had been hired by James so that there could be assistance obtained from Marilyn. In this scenario, Marilyn Scott is the agent because there had been hiring of Marilyn for a purpose. The method by which an agency relationship had been formed between Scott and Blatt had been an expressed contract of agreement from the existence of a Massachusetts Mutual Life.