Arnold hires Barbara to be his agent and represent him in negotiations to sell his house to Christina. Arnold tells Barbara to get the best price possible but under no circumstances will he sell the house for less than $300,000. Arnold tells Christina that Barbara will handle all the negotiations for the sale of the house.

Barbara and Christina come to an agreement to sell the house for $275,000.

Which of the following statements is true?

Arnold is not liable under the contract since he specifically told Barbara not to sell for less than $300,000.

Arnold is not liable under the contract since Christina should have known $275,000 was too low a price for the hosue.

Since a reasonable person in Christina's position would think that Barbara had authority to sell the house for $275,00, Arnold is liable under the contract.

None of the above statements are true.

Audrey is an employee of UPS. While driving to deliver a package, Audrey carelessly runs a red light and crashes into Bobby's car.

Which of the following is true?

Group of answer choices

Bobby can sue both Audrey and UPS.

Bobby can only sue Audrey since she was the careless one.

Bobby can only sue UPS since Audrey was working for UPS at the time of the accident.

Bobby can only sue Audrey since she was not in the scope of her employment at the time of the accident.

In order to form an agency relationship, which of the following is required?

Compensation for the agent

Contract between the agent and principal

Agent is subject to principal's control

All of the above