1. Jack is the principal. Mary is Jack's agent. Mary enters into a contract with Peter whereby Peter sells his house to Mary. a. Under what circumstances will Jack be liable for this contract with Peter. That is, under what circumstances will Jack be required to pay Peter for the house? b. Under what circumstances will Mary be liable for this contract with Peter. That is, under what circumstances will Mary be required to pay Peter for the house?. 2. Principal and agent are in principal's car. Principal is driving the car. Principal negligently injures a pedestrian who is lawfully crossing the street. Whom should the pedestrian sue? That is, who is likely liable to the pedestrian? Explain. 3. Principal and agent are in principal's car. Agent is driving the car. Agent negligently injures a pedestrian who is lawfully crossing the street. Whom should the pedestrian sue. That is, who is likely liable to the pedestrian? Explain. 4. Agent enters into a contract with Peter on behalf of principal whereby Agent purchases a house from Peter. Principal did not authorize this contract. a. Should Peter sue principal to obtain payment for the purchase of the house? Explain. b. Should Peter sue agent to obtain payment for the purchase of the house? Explain. Chapter 33 Agency Liability and Termination Acct352 Sections 012, 015, 017 SPRING 2021 Clarkson/Miller, Business Law: Text and Cases, Fifteenth Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Clarkson/Miller, Business Law: Text and Cases, Fifteenth Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. §1: LEARNING OBJECTIVES • Describe how agency relationship is terminated • Describe the duty of loyalty agents owe to principals • Describe the principal’s liability to third parties for tortious conduct of agent and independent contractors • Describe the agent’s liability to third parties stemming from breach of contract • Describe how independent contractor status is created • Describe the principal’s liability for the tortious conduct of an independent contractor • Describe the principal’s liability for the contracts created by an independent contractor Clarkson/Miller, Business Law: Text and Cases, Fifteenth Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. §2: Liability of Agent to Principal Agents owe to their principals a duty of loyalty. This is a fiduciary duty to not act adversely to the interests of the principal • An agent acts adversely to the interests of her principal when she does any of the following • Self-dealing • Usurps an opportunity of the principal • Competes with the principal • Misuses the principal’s confidential informati ...