Lance Nail hired Jimmie Limon to sell insurance for Texas Insurance Co. (“TICO”). Their contract stated, “Nothing in thi

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Lance Nail hired Jimmie Limon to sell insurance for TexasInsurance Co. (“TICO”). Their contract stated, “Nothing in thiscontract shall be construed as creating the relationship ofemployer and employee.” The contract was terminable at will byeither party. Limon financed his own office and staff, was paidaccording to performance, had no taxes withheld from his checks,and could legally sell the products of TICO’s competitors. WhenNail learned that Limon was simultaneously selling insurance forLouisiana Insurance Corp., one of TICO’s fiercest competitors, Nailwithheld client contact information from Limon that would haveassisted his sales for TICO. Limon complained to Nail thatwithholding information was inhibiting his ability to sellinsurance for TICO. Nail subsequently terminated their contract.Limon filed a suit in Texas state court against Nail and TICO.Limon claimed that he had lost sales for TICO and the resultingcommissions as a result of Nail’s withholding contact informationfrom him. Using the information presented in Chapter 32, answer thefollowing questions:1. Who is the principal and who is the agent in this scenario? Bywhat method was an agency relationship formed?2. What facts would the court consider most important indetermining whether Limon was an employee or an independentcontractor?3. How would the court most likely rule on Limon’s employee status?Why?4. Which of the four duties that Limon is owed by virtue of anagency relationship haslikely been breached?