In Which One of the Following Situations Is the Principal

question 144

Multiple Choice

In which one of the following situations is the principal not responsible for the conduct of his agent?

• A) When selling vacuum cleaners for Ace Vacuums Ltd., Joe lied to the customer about the qualities of the vacuum being sold. He was an independent agent.
• B) When selling vacuum cleaners for Ace Vacuums Ltd., Joe lied to the customer about the qualities of the vacuum being sold. He was an employee of Ace.
• C) In his job selling vacuum cleaners for Ace Vacuums Ltd., Joe drove his car carelessly and hit a pedestrian on his way to deliver a vacuum cleaner to a customer. He was an employee of Ace.
• D) In his job selling vacuum cleaners for Ace Vacuums Ltd., Joe drove his car carelessly and hit a pedestrian on his way to deliver a vacuum cleaner to a customer. He was an independent agent.
• E) When driving the employer's car to sell vacuums to a customer, Joe hit a pedestrian. Joe was an employee.

---

Definitions:

Company Resource People

Individuals within an organization who possess specific knowledge, skills, or access to information essential for carrying out tasks and supporting colleagues.

Major Problem

A significant issue or challenge that requires attention and resolution.

Sales Presentation

A detailed explanation or demonstration of a product or service designed to persuade potential buyers to make a purchase.

Business Proposition

An offer or proposal outlining the value a business will provide to prospective clients or partners.