1. What is Crusoes agent classification? What factors should CCT analyze in making this determination? 2. What...

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1. What is Crusoe’s agent classification? What factors should CCT analyze in making this determination?

2. What is the source of Crusoe’s authority to act as CCT’s agent?

3. Assume that Crusoe is driving to interview one of CCT’s customers for his study of CCT’s logistical operations. While en route, he negligently hits a pedestrian. Is CCT liable for injuries to the pedestrian caused by its agent (Crusoe) under the doctrine of respondeat superior? Explain your analysis.

4. Suppose that Crusoe learns several important CCT trade secrets in the course of his agency and sells the information to a CCT competitor for $500,000. Which fiduciary duty has Crusoe breached? Explain your analysis. What are CCT’s potential remedies against Crusoe?

5. Assume that part of Crusoe’s agreement with CCT allowed Crusoe to use CCT’s account at a local office supply store. Over a period of three months, Crusoe ordered any office machinery or supplies he needed for his work directly from the store. The store billed CCT directly and was paid (along with any other charges by authorized CCT employees) within 30 days of CCT’s receipt of the bill. Sup-pose that a dispute arises between CCT and Crusoe about the quality of Crusoe’s work and CCT terminates the consulting agreement. The next day Crusoe picks up a new computer from the office supply store, charges it to CCT’s account, and absconds with it. Is CCT liable for payment to the office sup-ply store for the computer? Explain your analysis.

6. What steps should CCT have taken to prevent pos-sible liability in Question 5?


Cold Case Trucking (CCT) specializes in transportation of products that require refrigeration or freezing while being transported from the product’s manufacturer to a wholesaler’s warehouse. In an effort to improve its shipping logistics operations, CCT hired Crusoe, who had experience in operations logistics, as a consultant. CCT and Crusoe agreed that Crusoe would study CCT’s operations by conducting inter-views with employees and customers and then would design a new logistics plan and oversee its implementation. The parties agreed that Crusoe would give regu-lar updates on his progress by attending weekly CCT management meetings. Because the CCT project was so time-intensive, Crusoe devoted 100 percent of his work time to CCT. The company also agreed to pay Crusoe $200 per documented hour for work on the project upon  receiving an invoice from Crusoe and to make office space available at CCT’s headquarters for Crusoe’s exclusive use.

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