Read or view the following:
- Pedestrian shoe Company hired Angela, age sixteen, to work during the summer. Angela was to solicit orders from shoe stores in her home town to buy shoes wholesale from Pedestrian. Pedestrian agreed to pay Angela $1.00 for each pair of shoes ordered through her. Angela was so successful that she hired Beth, age 25, to help, and promised to pay Beth $.50 for each pair of shoes order through her.
a. Is Angela an agent for Pedestrian?
b. Can Beth properly treat as void her appointment as an agent of Angela and submit her orders directly to Pedestrian for the larger compensation?
- Antonia wants to buy a car. The dealer permits her to take an automobile home to show her mother. On the way home, she gets into an accident. Is Antonia an agent for the dealer?
- Jon Cady hired Telfair Realty to find a buyer for his home. On July 8, an offer to purchase was presented to Jon Cady. This offer was signed “Reta May Johnson by Jared Johnson, son” as purchaser, and was accompanied with a cashier’s check for $5,000 marked “earnest money.” After studying the offer, Jon Cady accepted it and signed the agreement; closing was scheduled for August 25. On that date, the purchaser did not appear. Reta May notified the seller that she did not intend to complete the transaction. She requested that her earnest money be refunded since she was not bound to the sales contract. She argued that her son was not authorized in writing to bind her to a real estate sales agreement. Jon Cady and Telfair Realty sued to recover their respective damages resulting from this alleged breach of contract. Is Ms. Johnson liable for breach of contract?
- New World Fashion provides guidance to persons interested in entering the retail clothing business. Anderson was hired as a sale representative of New World. After several month of working for New World, Anderson decided to start a competing business. However, prior to resigning, Anderson encouraged one of New World’s prospective clients to contract with Anderson personally. He then provided to this client the type of services typically furnished by New World. Upon discovery of these facts, New World fired Anderson and sued him to recover lost profits. Will Anderson be held liable to New World for the financial gain he obtained in the transaction?
- Amos was the sales manager for Plenty Company, a turkey-packing company. As a member of the management group, Amos was consulted on all phases of the business. He persuaded the company to enter into a contract to buy 20,000 turkeys, but concealed for some time the fact that he was the seller of the turkeys. Plenty did not carry out the contract, and Amos brought suit. Can Amos enforce the contract?
- Peterson’s Florist Company hired Alex to deliver floral arrangements. One day while on delivery, Alex fell asleep and hit a telephone pole. The damage to the delivery van cost $1,600 to repair. Can Peterson’s Florist Company recover this amount from Alex?
- Perry hired the Creditor’s Collection Agency to collect overdue accounts. Perry informed the agency that Terry owed $500 for merchandise received. In fact, Terry owed only $400. However, the agency collected the entire $500 (because Terry was also mistaken about the amount owed), which it then paid to Perry. Later, Terry discovered the overpayment.
a. Perry has to repay Terry the overpayment.
b. Creditor’s Collection Agency has to repay Terry the overpayment.
c. Both Perry and Creditor’s Collection Agency are responsible to pay Terry for the overpayment.
d. Too bad for Terry. He doesn’t have a right to get his money back from either Perry of Creditor’s Collection.