Identify the Following Parties and Relationships

question 47

Essay

Identify the following parties and relationships.
a. Patricia hires Andrew, an attorney, to negotiate a contract to purchase some property. She agrees to pay him $75 an hour for his services, and he agrees to use his own office and secretarial staff to negotiate and draft the agreement.
b. Mel owns a retail store. He hires Sarah to work for him as a clerk in the home furnishings department.
c. Carl is the general contractor for the construction of a large office complex. Carl hires Ed's Electric Company to do all of the wiring for the building.
d. Incellmed Corporation hires Bob as an outside salesman and instructs him to call on customers in a specified territory and to solicit orders for their products.
e. Marlin, who is the owner of Marlin's Department Store, hires Melissa as the general manager of his new branch in the Hillridge Mall.

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Definitions:

Moral Hazard

The situation where one party is more likely to take risks because another party bears the consequences.

Moral Hazard

A situation where one party is more likely to take risks because they do not bear the full consequences of their actions, often observed in insurance and financial sectors.

Risky Drivers

Individuals who engage in behaviors while driving that increase the probability of accidents, such as speeding, driving under the influence, or distracted driving.

Buying Insurance

The act of entering into an agreement with an insurer to receive financial protection or reimbursement against specified future losses.