Peggy realizes she can’t really run this company by herself and day to day operations will entail tasks such as securing sales contracts, knocking on doors, making phone calls, developing her ideas into marketable gaming software and updating the games to keep customer interest. She has always thought of herself as a polite person, but Peggy knows there are all kinds of rules under the law on how to deal with employees and she is a bit intimidated. She has heard that her employees are actually her agents and she is known as the principal in this legal relationship. Peggy tells you that at least they can only speak for her or bind her to contracts that she specifies in detail, such as sending a sales person to sign a contract with ABC Digital to buy her video game. You tell Peggy that this express authority is not the only way she can be held to an agreement by an employee. Define the two other ways agents can bind principals to agreements or actions and give an example of each. When Peggy looks shocked, explain to her the duties her employees owe her when acting on her behalf to carry out company business. (You answer should be at least 5-7 sentences.)
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