1) An agency relationship may be established in which of the following ways:

a) A principal ratifies the action of another.

b) You find a student slumped over in a classroom and you call 911.

c) A contract is signed between you and a principal for you to act on their behalf.

d) An agency relationship can be established in each example above.

2) Memphis, Light, Gas & Water (MLGW) hires Ditches R Us Company to dig a 30-foot-long 10-foot-deep trench in Germantown. Sammy, the backhoe operator, is still hungover from the previous nights March Madness celebration and forgets to set up pedestrian barriers as required by the City of Germantown ordnance. Jesse, walking near the digging site and texting on her iPhone, falls into the trench and breaks her back. Which is the best statement?

a) MLGW is liable for Jesses injuries.

b) Sammy and Ditches R Us are both liable for Jesses injuries.

c) Jesse is liable for her own injuries.

d) The City of Germantown is liable for Jesses injuries.