Principal Resources Corporation Contracts with Quality Construction to Build an Addition

question 42

Essay

Principal Resources Corporation contracts with Quality Construction to build an addition to Principal's corporate office building.Quality contracts with Rite Supply Company for materials for the addition but refuses to pick up the materials.Meanwhile,Principal hires Skye,a certified public accountant,to work in its cost-accounting division as an employee,with no authority to hire or supervise others.Skye asks Theo,an outside experienced accountant,to advise her on certain accounting procedures but fails to pay Theo for the service.Principal also contracts with Uma,a salesperson,to solicit orders for its products in a designated territory.Uma obtains an order from Verity Industries,Inc. ,which is assured the order will be filled soon.But Uma does not follow through with the paperwork and fails to submit the order to Principal.Verity suffers a loss.Rite Supply,Theo,and Verity Industries claim Principal is liable under agency law.Discuss fully whether an agency relationship was created by Principal with Quality Construction,Skye,or Uma.

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Definitions:

Levels-of-processing Model

A theory suggesting that the depth (shallow to deep) of mental processing affects memory recall, with deeper processing leading to better retention.

Graduated System

A system that progresses in stages, levels, or degrees, often used in educational, professional, or rehabilitation contexts.

Three-level System

A model or system that is divided into three distinct levels, often used in various scientific and organizational contexts to simplify complex structures or processes.

Superficial to Deeply Entrenched

Superficial to Deeply Entrenched describes a progression from surface-level to deeply rooted or firmly established states or conditions.