Chris Was a Systems Analyst Hired to Determine the Best

question 123

Multiple Choice

Chris was a systems analyst hired to determine the best system for a retail china shop. After a careful analysis of the shop's needs and the available software, Chris presented a written report, which was approved by the owner of the business. Chris was paid his fee and was asked by the owner if he would act as his agent in purchasing the hardware and software recommended in the report. The purchase was not to exceed $40,000 and the commission was to be $1000. Chris agreed. Read each of the following separately and indicate which is true.

• A) The agreement to act as agent fails to be a valid agency contract because it is not in writing.
• B) If Chris buys the hardware and software himself for $36,000 and sells it to the owner for $39,000, he is entitled to his commission because the price to the owner is still within the price allowed.
• C) Chris will not be in breach of his fiduciary duty if he buys the recommended system from a firm in which he has an interest, even if he does not mention that fact to the owner.
• D) Chris could be in breach of his duties if he delegates the task to someone else.
• E) Chris is entitled to accept a commission from both the seller and the purchaser, as long as the total price paid by the purchaser is less than $40,000 and the hardware and software is comparable to that recommended in the report.

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