Does Michael have an agency conflict to deal with?

Yes; as both the owner and operator of Michael's Tantalizing Tees, Michael has created the necessary agency relationship through which an agency conflict can exist.

No; as both the owner and operator of Michael's Tantalizing Tees, Michael has not created the necessary agency relationship through which an agency conflict can exist.

Yes; there is always an inherent conflict of interest between owners and operators $($managers$).$

No; by having part$-$time, as opposed to full$-$time, employees, Michael is prevented from experiencing an agency conflict.