Agency Agreements

GC and EPI agreed that GC will purchase EPI products exclusively for use in GC cleaning services.EPI and GC have drafted a standard sales contract to represent their agreement.The contract terms for the sale of EPI cleaning products include:

GC agrees to purchase all its cleaning product needs for three (3) years exclusively from EPI;

The price for the purchased products will remain the same for GC for the three (3) year period;

EPI grants permission to GC to resell any of the EPI-purchased products directly to customers, including businesses, via the GC website and its public retail store;

GC will purchase cleaning products monthly that will be delivered by EPI via EPI trucks;

EPI and GC have agreed on the price, payment terms, delivery dates and locations, etc.

Scenario:GC has a large supply of EPI products in its storage warehouse for use in cleaning services and to resell to customers. GC sold two (2) cases of Stain-Away carpet cleaning solution to Mark's Carpet Cleaning, asole proprietorship.At the time of purchase, Mark told GC he will use Stain-Away to clean carpets for his clients and would like purchase more Stain-Away from GC in the future.

1.Analyze and explain whether the sale of Stain-Away to Mark, and Mark's use of the product for his clients, creates an agency relationship with GC and why.