a. the relationship of a child to its parents in terms of duty and obedience.
b. a fiduciary relationship between two parties, in which one party agrees to represent or act for the other.
c. a relationship in which one works for, and receives payment from, an employer, but whose working conditions and methods are not controlled by the employer.
d. a relationship involving a skilled person who controls the manner and method of his work. Answers: a. Incorrect. Although in some cases children may act as agents for parents, this is not the definition of agency.
b. Correct. Agency is a relationship, based on trust, between two parties. One party agrees to act on behalf of another; the other party agrees to employ and control the first.
c. Incorrect. This is the definition of an independent contractor, who may or may not be an agent.
d. Incorrect. This is a partial definition of an independent contractor, who may or may not be an agent. 2. A fiduciary relationship is one that:
a. involves a high degree trust and confidence.
b. arises only between family members.
c. typically exists between employees in government agencies.
d. allows the parties to legally avoid their obligations to one another. Answers: a. Correct. This is a defining characteristic of a fiduciary relationship.
b. Incorrect. Fiduciary relationships may exist between family members, but they commonly exist between other parties as well.
c. Incorrect. Fiduciary relationships typically do not exist between employees in government agencies.
d. Incorrect. A fiduciary relationship does not allow the parties to legally avoid their obligations to one another. 3. When determining whether a worker is an employee or an independent contractor, the key element to consider is:
a. the length of time necessary to finish a job.
b. the hours worked by the worker.