Chapter 7 Flashcards
1
Q
How are principal-agent relationships generally created?
A
Through an employee agreement in the form of a contract.
2
Q
The most important factor in determining whether a sales associate is an employee or an independent contractor is
A
The employment contract
3
Q
Self-employed independent contractors over whom the principal has no control and no responsibility, and who are employed because of their specific expertise, are generally known as
A
Professional Agents
4
Q
What rights do principals or agents have to cancel an agency?
A
The power but not the right to cancel the agency.
