Reference no: EM132313608

Agency Agreements

GC and EPI agreed that GC will purchase EPI products exclusively for use in GC cleaning services. EPI and GC have drafted a standard sales contract to represent their agreement. The contract terms for the sale of EPI cleaning products include:

• GC agrees to purchase all its cleaning product needs for three (3) years exclusively from EPI;
• The price for the purchased products will remain the same for GC for the three (3) year period;
• EPI grants permission to GC to resell any of the EPI-purchased products directly to customers, including businesses, via the GC website and its public retail store;
• GC will purchase cleaning products monthly that will be delivered by EPI via EPI trucks;
• EPI and GC have agreed on the price, payment terms, delivery dates and locations, etc.

Scenario: GC has a large supply of EPI products in its storage warehouse for use in cleaning services and to resell to customers. GC sold two (2) cases of Stain-Away carpet cleaning solution to Mark's Carpet Cleaning, a sole proprietorship.  At the time of purchase, Mark told GC he will use Stain-Away to clean carpets for his clients and would like purchase more Stain-Away from GC in the future. 

1. Analyze and explain whether the sale of Stain-Away to Mark, and Mark's use of the product for his clients, creates an agency relationship with GC and why.