1. Joshua K. accepts an agency appointment from his cousin, Sungmin J., President of a Seoul-based cosmetics company, to promote a new fragrance that has gained popularity with Korean boy bands.Kim clears his schedule and begins work on releasing a dynamic marketing campaign that features a number of band members endorsing the new fragrance.A short time later, Kim is sued by one of the boy bands claiming that the cosmetics company Kim represents was not authorized to use their image in its marketing materials.Kim meets with his lawyer to discuss a claim over against his principal (i.e., the cosmetics company headed by his cousin). Which duty of a principal might be most important to Kim at this particular point in time?

a.Compensation.

b.Indemnification.

c.Reimbursement.

d.None of the above.

2. Valencia Manufacturing, Inc. ("VMI") offers Dayana E. an attractive plant manager position which requires relocation to another state.Dayana is told by VMI's President and CEO that VMI is growing rapidly and that the job offered will be long term, with good promotion potential.Dayana accepts the offer in reliance on VMI's representations, terminates her relationship with the 'former' employer, and relocates to her new place of work in another state.Three months later, Dayana's employment with VMI is suddenly terminated in an abrupt "layoff" triggered by public disclosure of long-hidden financial problems and 'creative accounting' at VMI.Dayana sues VMI for wrongful discharge. To defend against the employment-at-will doctrine defense expected to be raised by VMI, Dayana's cause of action will likely be based

a.on contract theory.

b.on public policy theory.

c.on tort theory.

d.both a. and c. above.