Final answer:
Agency relationships can indeed exist between employers and independent contractors, signified by the contractors acting on behalf of the employers, though the control and nature of these relationships can vary.
Step-by-step explanation:
Agency Relationship Between Employers and Independent Contractors:
Agency relationships are commonly understood to be between employers and employees, but they can also extend to independent contractors. Despite the independence associated with contractors, when an employer hires a contractor to perform specific tasks, the contractor may act on behalf of the employer, creating an agency relationship
However, the extent of the agency relationship with independent contractors can vary depending on the degree of control the employer has over the work performance and financial aspects of the project. Flexibility in decision-making, as suggested by Dillon's Rule, is not necessarily a characteristic of this agency relationship. It's essential to differentiate this relationship from that of sole proprietorships, partnerships, franchises, and corporations, which represent the employer side in the market.