I'm working on a business law writing question and need the explanation and answer to help me learn.
Scenario:
Sierra is the owner of a small company that sells handmade crafts online. She decides to hire Toby as her sales representative to help expand the business. Sierra and Toby agree that Toby will receive a commission of 5% on all sales he makes. Toby is given a list of customers and is told to contact them and try to make sales. Toby makes a sale to one of Sierra's customers but fails to inform Sierra about the sale. When Sierra finds out, she is angry and tells Toby that he violated their agreement.
Questions: (use full sentences in your responses)
- What is agency law?
- Who is the principal in this scenario? Who is the agent?
- What type of agency relationship exists between Sierra and Toby?
- Did Toby have the authority to make the sale to Sierra's customer?
- What are the consequences of Toby's failure to inform Sierra about the sale?
- What are Sierra's legal options in this situation? When considering legal options, think about what you learned in earlier modules (e.g., dispute resolution, contracts law, etc.)