Agency formation · Select one

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Dana Whitlock, a ceramic artist, left for a three month residency abroad in February 2026. Before leaving she asked her neighbor, Theo Marsh, to sell her finished pieces at a weekly outdoor market while she was away. Her handwritten note said: "Sell only at the prices on the tags, never offer discounts, and text me a photo of each sale. This is a favor between friends, not a business arrangement, and you are not my agent." Theo agreed and was not paid. On March 14, Theo sold a large vase for its tagged price of $1,800 to Imani Cole, who later found a hairline crack and sued Dana for a refund, alleging that Theo sold the vase on Dana's behalf. Dana contends Theo was never her agent.

Was Theo acting as Dana's agent when he sold the vase?

Choose one answer.

A. No, because Dana's note expressly stated that Theo was not her agent, and the parties' own characterization of their relationship controls.B. No, because Theo received nothing for his services, and an agency relationship requires consideration.C. Yes, because Dana manifested assent that Theo would sell her pieces on her behalf under her pricing and reporting instructions, and Theo consented; the disclaimer in the note does not control.D. Yes, but only if the note qualifies as a written agency agreement, because authority to sell goods worth more than $500 must be in writing.

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Question ID: business-associations-mcq-c1-01 · Report an issue with this ID · Coverage and review status