Agency Relationship Activity

Question Description

The Clean-N-Shine (“Clean’) owners recognize the importance of effective recruitment and hiring. They feel competent about recruiting and hiring new Clean management but want to hire an expert to recruit and hire employees to develop and manage their website, internal computer systems, and IT support.

Background Facts You Need To Know: The Clean-N-Shine (“Clean’) owners recognize the importance of effective recruitment and hiring. They feel competent about recruiting and hiring new Clean management but want to hire an expert to recruit and hire employees to develop and manage their website, internal computer systems, and IT support. They agree to hire a recognized expert in this area, George Tacy, to act as Clean’s agent in hiring website/computer/IT employees. The owners want to give full authority to Tacy to direct every aspect of recruitment and hiring of these employees, from the initial recruitment of applicants to the final hiring process.

Clean owners want to ensure that their agreement with Tacy will be valid and include all important terms. They have requested a meeting with TLG to discuss agency agreements. Winnie and Ralph have asked you to join the meeting and respond to some of the Clean owners’ questions about agency law. Instructions Winnie and Ralph direct you to draft responses to several questions for the Clean owners’ meeting.

1. Analyze and explain the rights of Clean under the agency agreement with Tacy.

2. Analyze and explain two specific duties Tacy must perform under the agency agreement with Clean.

3. Analyze and explain two potential liabilities Clean could face under the agency agreement with Tacy.

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