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:

Sigmund Freud

Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Holistic Care

An approach to healthcare that aims to treat the whole person, addressing physical, emotional, social, and spiritual needs, rather than just focusing on the symptoms of a disease.

Libido

In psychoanalytic theory, it represents the sexual energy or drive underlying human behavior.

Pancreas

An organ in the body involved in the regulation of blood sugar levels and digestion through the production of enzymes and hormones like insulin.