Winter was coming early in New Brunswick and it was good news for Debbie Sousa. She

had just purchased a second truck for her snow removal business in Fredericton, and a

longer season would help her to generate more revenue. When she bought the second

truck, her brother who owned a similar business in Moncton suggested she hire a sales

manager to make sure she had enough contracts to cover the new costs. She took his

advice and hired a sales manager who promised they could help grow the business.

However, when Sousa returned to the office one day, she was alarmed to discover that

the new sales manager committed her to a contract to clear several new driveways in

St$.$ John, over an hour away.

a$.$ What are the four ways in which an agency relationship can be created?

b$.$ Does an agency relationship exist between Sousa and the sales manager?