Peter Hires Brian and Tells Brian That He Has the Authority

question 3

Multiple Choice

Peter hires Brian and tells Brian that he has the authority to make purchases for Peter's company.Peter tells Brian he is not to consider himself as Peter's agent.Is Brian Peter's agent?

• A)Yes,because if a party's conduct indicates an agreement that one person is to act on behalf of and under the control of another,this creates an agency relationship even when the parties expressly say they do not intend to create it.
• B)Yes,because Peter hired Brian and employees are always agents of their employers under all circumstances.
• C)No,because Brian's authority is limited to making purchases only.
• D)No,because Peter expressly said Brian was not to act as his agent.