Business Law:
View the clip below in which one person believes they are partners and the other believes it is an employer / employee relationship. Agents may bind the principal in a number of ways. When you are reviewing the video consider whether the intentions / understanding of each party make a difference and then respond to the discussion question below.
As a small-business owner you are faced with rising costs particularly employment costs insurance et cetera. So you decide to hire some friends and pay them as they work rather than go through the expense and procedure of bringing in actual employees. Your friends wear the business uniform deal with vendors and customers and tell friends and family that they work for the business. One friend / employee orders way too much from a vendor. The vendor has dealt with the person numerous times; in fact the person has been ordering from the vendor for months.