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Garnett Fashions Ltd

Question 14

Multiple Choice

Garnett Fashions Ltd.just terminated its long-term agency relationship with the Higa Agency,which it has retained for many years to negotiate purchase contracts with retail outlets for Garnett's manufactured goods.What advice would you give Garnett at this time?


A) that Higa has the onus to inform outsiders that it is no longer Garnett's agent
B) that Garnett has the onus to inform outsiders that Higa is no longer its agent
C) that outsiders have an obligation to prove whether or not there is an ongoing agency relationship between Garnett and Higa
D) that Higa can no longer bind Garnett to contracts

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