PART 2:AGENCY AND FRANCHISING

Assignment Questions: (2 marks each)

1. What does it mean when we say that an agent is the fiduciary of his principal?

2. How is the scope of an agent's authority to enter into contracts for a principal extended so as to permit the agent to do the job which the principal hired him or her to do?

3. How is the agency relationship used in a corporation and a partnership?

4. Give reasons why a company would expand through franchising rather than through the setting up of its own branches.

5. Does the franchisor have a fiduciary duty towards the franchisee? How about the other way around?

Length of Response:1 paragraph per question