Fact Pattern 19-1 Nadine and Orin work at Pumps & Pipes Inc. Nadine is a sales r
ID: 338876 • Letter: F
Question
Fact Pattern 19-1 Nadine and Orin work at Pumps & Pipes Inc. Nadine is a sales representative who works with Pumps’s customers, including contractors, government agencies, farmers, and others, as well as individual consumers. Pumps closely supervises all of its sales reps, and dictates their schedules. Orin is an engineer who works in Pumps’s design department who has no contact with customers and has no authority to speak for the company. Ellen is the CEO.
26. Refer to Fact Pattern 19-1. With respect to third parties, Nadine is Pumps’s
a. employee, agent, and independent contractor.
b. employee and agent.
c. employee but not agent.
d. independent contractor.
Explanation / Answer
The correct answer is B: Employee and agent
The third party will know that Nadine works for Pumps and they consider him as an agent from the company for the business purpose. Usually, the sales reps are considered as the agents of the company. Nadine can only become an independent contractor if he stops working for Pumps and continues to sell their products independently.
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