Lois Watson was a new salesperson at a local electronics store. On Lois's first day on the job, she was left in charge of the store while the manager and the other salesperson went to lunch. The manager specifically told Lois NOT to sell anything over $50 but to just tell the customer to come back in an hour when they returned from lunch. While the manager was at lunch, a customer came in and decided to purchase a new Ultra HD TV and several accessories. The total sales price was $2,600, and the customer could NOT wait. Lois sold her the merchandise at a $400 discount. When the customer returned

the next day to pick up the goods, the manager refused to go through with the sale.

Required:

a) Explain whether the manager has to go through with the sale and why or why not.

b) Explain what is meant by an agent's fiduciary duty to the principal, and provide three examples of how a fiduciary duty can be breached.

c) Explain why agents are more important when dealing with corporations than they are with partnerships or sole proprietorships.