Bryant,doing business as Fair Realty,employs Chris and Deborah as salespersons.Tammy contracts with Bryant to sell her house because she is aware of the good reputation of Fair Realty's salespersons.In this situation:
A) Chris and Deborah are agents of Tammy and Fair Realty but they have no authority to show Tammy's house to prospective purchasers and to make representations about the house unless Tammy expressly and explicitly grants this authority directly to them.
B) Chris and Deborah are employees/agents of Fair Realty and subagents of Tammy,and they have authority to show Tammy's house to prospective purchasers and to make representations about the house.
C) Bryant cannot appoint subagents because Tammy's appointment of him reflected her confidence in and reliance upon his personal skill,integrity,and other qualifications.
D) Chris and Deborah are subagents of Fair Realty and,as such,have a fiduciary duty only to Fair Realty.

Question

Quizplus · Accepted Answer

Chris and Deborah are employees/agents of Fair Realty, which means they are authorized by Fair Realty to act as subagents of Tammy. As subagents, they have the authority to show Tammy's house to prospective purchasers and make representations about the house. Tammy trusted Fair Realty's reputation and therefore, implicitly trusted the agents who work for it. Therefore, Chris and Deborah owe a fiduciary duty both to Fair Realty and Tammy.

Bryant,doing Business as Fair Realty,employs Chris and Deborah as Salespersons