As a small-business owner,you are faced with rising costs,particularly employment costs,insurance,and the like.You decide to hire some friends and pay them as they work rather than go through the expense and procedure of bringing in"actual"employees.Your friends wear the business uniform,deal with vendors and customers,and tell friends and family that they work for the business.In one instance,one friend orders way too much from a vendor.

• Explain agency law terminology and the three ways an agency relationship is created. What are the implications of agency law that apply in the above scenario?Is your business liable for the improper order?Why or why not?Be sure to explain"scope of employment"and what this means and how it is applicable to the scenario.