1. Agency AIFA orally contracted with BIFA, an independent consultant, for AIFA to work part-time las AIFA's agent to perform AIFA' customers' service calls. BIFA, a computer programmer and software designer, was authorized to customize AlFA's software to the customers' needs, on a commission basis, but was specifically told not to sell AIFA's computers. On September 15, BIFA made a service call on CIFA to repair CIFA's computer. BIFA previously had called on CIFA, customized AIFA's software for CIFA, and collected cash payments for the work performed. During the call, BIFA convinced CIFA to buy an upgraded AIFA's computer for a price much lower than AlFA normally would charge. CIFA previously had purchased computers from other AIFA's agents and had made substantial cash down payments to the agents. CIFA had no knowledge that the price was lower than normal. BIFA received a $1,000 cash down payment and promised to deliver the computer the next week. BIFA never turned in the down payments and left town. When CIFA called the following week to have the computer delivered, AIFA refused to honor CIFA's order. For items 1 through 10, indicate whether the statements are true (T) or false (F) Statements Answer 1. AIFA's agreement with BIFA had to be in writing for it to be a valid agency agreement 2. AIFA's agreement with BIFA empowered BIFA to act as AlFA's agent 3. CIFA was entitled to rely on BIFA's implied authority to customize AIFA's software 4. CIFA was entitled to rely on BIFA's express authority when buying the computer 5. AlFA's agreement with BIFA was automatically terminated by BIFA's sale of the computer 6. AlFS must notify CIFA before BIFA's apparent authority to bind AIFA will cease 7. AIFA is not bound by the agreement made by BIFA with CIFA 8. AlFA may unilaterally amend the agreement made by BIFA to prevent a loss on the sale of the computer to CIFA 9. AIFA, as a disclosed principal, is solely contractually liable to CIFA 10. Both AIFA and BIFA are contractually liable to CIFA