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:

Transaction Exposure

The potential risk of exchange rate movements affecting the value of a company's financial transactions denominated in foreign currencies.

Risk Exposure

The extent to which an entity is vulnerable to losses from operational, financial, or market-related risks.

Time of Settling

The specific point when the obligations of a financial transaction are fulfilled.

Foreign Subsidiary

A company that is based in one country but is controlled by a parent company in another country, operating under the laws and regulations of the country where it is located.