Upper Cuff Is a Men's Clothing Store

question 24

Multiple Choice

Upper Cuff is a men's clothing store.Upper Cuff contracts with Janis to be their buyer.The contract states that Janis will be "employed to be an independent agent representing Upper Cuff,able to make any contracts related to the buying or selling of inventory." Janis,on her first week on the job,contracts to sell Upper Cuff's entire inventory to their competitor,Lower Lapel.Which of the following statements is most likely true?

• A)Janis could be liable because she breached her fiduciary duty to Upper Cuff.
• B)Janis cannot be held liable because she acted within the actual authority granted to her by her contract.
• C)Janis can be sued for the tort of interference with economic relations because she is an employee.
• D)Janis cannot be held liable because Upper Cuff gave her apparent liability.
• E)Janis could be held liable because she wasn't qualified to do the job.

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Definitions:

Fixed Cost

Costs that do not vary with the level of production or sales, remaining constant regardless of the amount of goods or services produced or sold.

Electricity

A form of energy resulting from the existence of charged particles, used as a power source for machinery and equipment.

Least-squares Regression

A statistical method used to determine the best-fitting line through a set of points by minimizing the squares of the distances of the points from the line.

Variable Component

A portion of a cost or expense that varies directly with production volume or activity level.