None of the Contracts Between the Six Independent Manufacturer's Agents

question 46

Multiple Choice

None of the contracts between the six independent manufacturer's agents and the ABC Company speak as to how the contracts can be terminated. All six agents have been doing a splendid job for several years in selling ABC's products. However last week, ABC's board of directors decided to turn the selling function over to the company's own employees. This is to be completed within the next 30 days. How can the company's agency contracts with the independent agents be legally terminated?

• A) By simply having the principal give notice that he wishes the relationship to come to an end; no other explanation is required.
• B) No problem, since a reasonable time has passed for each agency contract.
• C) Can be terminated by declaring the company's sales project to be at an end.
• D) By failing to renew the contracts upon expiration.
• E) Not possible, without a breach and the resulting severance damages.

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Definitions:

Myelin Sheath

The protective covering around nerve fibers in the central and peripheral nervous systems, enhancing signal transmission.

Central Nervous System

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The portion of a vertebra that encapsulates and protects the spinal cord, forming the backside of the spinal canal.

Drowsiness

A feeling of being sleepy and lethargic, often leading to a decreased level of consciousness.