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:

Acquisition

The process of obtaining control of another company by purchasing its assets, stock, or both.

Consolidated Statement

A financial statement that presents the financial position and results of operations for a parent company and its subsidiaries as a single entity.

Loss On Sale

The financial loss that occurs when the selling price of an asset is less than its carrying amount at the time of sale.

Operating Activity

Activities that constitute the primary or main activities of an organization, such as sales or services.