Rachel Recently Started CanScot Curling Ltd, a New Business That

question 1

Multiple Choice

Rachel recently started CanScot Curling Ltd, a new business that manufactures curling brooms.She is very comfortable running the workshop and the warehouse in Calgary, but she wanted to find at least one person to sell her goods in each province.With that in mind, she arranged for CanScot to enter into a distributorship agreement with Jack in Nova Scotia.Which of the following statements is most likely to be TRUE?

• A)Each time that a broom is sold, a contract will be created between CanScot and the buyer.
• B)Regardless of the precise nature of CanScot's relationship with Jack, the manufacturer must provide all warranty services.
• C)Under the distributorship agreement, CanScot actually authorized Jack to deal with customers on its behalf.
• D)Jack is not CanScot's agent, but Rachel should be concerned by the fact that some of the customers who deal with Jack believe otherwise.
• E)As long as the distributorship agreement expressly states that Jack is not CanScot's agent, the company cannot be held liable to anyone other than Jack.

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