Was an agency relationship created by Classic Beverage with Build-It Construction, Elmo, or Gloria? According to Clarkson et al (2016), in a principal-agent relationship, the parties have agreed that the agent will act on behalf and instead of the principal in negotiating and transacting business with third parties. (Clarkson et al, 2016, p. 606). According to Clarkson et al (2016), an employer and an employee who deals with third parties have an agency relationship (Clarkson et al, 2016, p. 606). According to Clarkson et al (2016), an employer and an independent contractor, who has a contract with the employer but is not controlled by the employer, may possibly have an agency relationship if the independent contractor deals with a third party (Clarkson et al, 2016, p. 607). Build-It Construction is a building contractor, which can be classified as an independent contractor and Classic Beverage is the employer. Classic Beverage and Build-It construction did not agree that Build-It Construction will act on behalf of Classic Beverage when it comes to third parties. Thus, this situation does not fall under the definition of an agency relationship. Elmo is hired as an employee by Classic Beverage and has no authority to hire or supervise others. If Elmo did have the authority to hire others, Elmo would be classified as an agent dealing with third parties and there would have been an agency relationship. However, since Classic Beverage specifically told Elmo he cant hire others, he is not an agent, and the situation does not meet the criteria for an agency relationship. Gloria contracts with Classic Beverage as a salesperson for Classic Beverage's products, thus Gloria deals with third parties and acts on behalf of Classic Beverage when negotiating a sale. This classifies Gloria as an employee and meets the criteria for an agency relationship. Due to an agency relationship between Classic Beverage and Gloria, Classic Beverage is liable under agency law for the loss Highpoint Concessions suffered due to Gloria failing to file the paperwork and submit the order. In conclusion, there was no agency relationship created by Classic Beverage and Build-It Construction or by Classic Beverage and Elmo. Due to there being no agency relationship, Classic Beverage is not liable under agency law like Dependable Tools and Fayette claimed. There was an agency relationship created by Classic Beverage and Gloria, making Classic Beverage liable under agency law and Highpoint Concessions' claim correct. I need help with having a reply to this. I am required to reply with a discussion to this persons piece above.