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BMGT 380 Week 6 Learning Activities


Week 6

Learning Activity 1

Read case scenario below and analyze.

Scenario: Arnold is the CEO of Beta Corp. Arnold’s responsibilities include making decisions on product development, marketing and other significant business directions. Arnold’s position is subject to the approval and oversight by Beta’s Board of Directors.

Carol is a Beta manager whose responsibilities include directing Beta’s day to day hiring, firing, purchasing and selling.

Dave is a Beta salesperson whose daily activities are controlled by Carol, his supervisor.

Erin writes technical manuals for Beta products according to Arnold’s instructions and subject to Beta’s control, but Erin has no dealings with Beta’s customers or suppliers.

Fred works from home to edit Beta’s technical manuals on a contract- per-manual basis (he is paid for each manual he edits), and is not otherwise subject to Beta’s control.

For each of the following persons listed below, identify each as either a principal, an agent, an employee or an independent contractor – and specifically why.     For example, is Arnold a principal, agent employee or independent contractor and why?

A person may have more than one status, i.e, a person could be an agent and have another status as well.

  1. Arnold
  2. Carol
  3. Dave
  4. Erin
  5. Fred


Learning Activity 2: Due Thursday, 11:59 pm ET (late postings will not earn credit)

Respond to the case scenario below.

Scenario: Brenda is purchasing agent for Commodities Corp. Dennis, a Commodities corporate officer, gave Brenda written authority to buy for Commodities Corporation as many computers and support devices as necessary. Dennis signed the written authority document. The next day, Dennis called Brenda and told her to buy only 50 notebook computers and nothing else.

Brenda went to E-Products, Inc. the next day, showed the written authority from Dennis to E-Products and entered into a written contract with E-Products to buy 60 notebook computers and a selection of printers and scanners to support the computers. E-Products promptly shipped the order to Commodities.

Dennis claims Commodities is not liable to E-Products for the sale because, Dennis claims Brenda exceeded her agency authority and thus was not acting as a Commodities agent in the purchase with E-Products.

  1. Is Commodities liable to E-Products under the sales contract for the computers, printers and scanners? Why or why not?
  2. Is Brenda personally liable to E-Products to pay for the computers, printers and scanners? Why or why not?
  3. Is Brenda liable to Commodities for exceeding her agency authority and thus liable for paying Commodities for the purchases? Why or why not?