Business Law Study Guide Overview

Welcome to your Business Law study guide. Let’s walk through the key topics you’ll

need for your exam. First, the Law of Agency. An agency relationship exists when three

things are true: Both parties agree to the relationship. The agent is acting on the principal’s

behalf. And the agent is subject to the principal’s control. So remember: agreement,

benefit, and control. That’s the foundation. Next, employees versus

independent contractors. The big test here is control. If the employer sets hours,

supervises, provides tools, and pays a salary with benefits, that’s an employee.

If the worker supplies their own tools, works independently, and has specialized skills,