A+ Grade Responses
a. Explain the agency relationship (employee, independent contractor, fiduciary, principal/agent) between Wiley, Petunia, and Peter. Be sure to first define the agency relationship, apply the definition to the facts, and then state your conclusion based on the definition and facts.
b. Identify the forms of authority each of them operate under (contract, power of attorney, implied authority, agency by estoppel or ratification). Be sure to include the definition of that agency relationship and what facts you relied upon to reach your conclusion.
c. Two years ago Petunia fired Marcus Snively, who had been in charge of designing and purchasing pamphlets that the park would give to guests as educational tools. One week after being fired, Marcus approached the printer that the park always used for these pamphlets. Marcus had designed a pamphlet that included all sorts of incorrect information about the animals at the park, hoping that it would make the park ownership look foolish. Marcus ordered 10,000 of the pamphlets from the printer (as he had done in the past) and asked that the charge be applied to the park’s standing credit account with the printer. The printer, who didn’t know Marcus had been fired, obliged. When Petunia received the boxes of pamphlets the following week she called the printer and advised the printer that Marcus didn’t have permission to make the order. The printer refused to take the pamphlets back and demanded payment.
i. Does the printer have a right to demand payment under agency law? Explain the legal principles you used to reach your conclusion, and include a discussion of when a principal is liable for unauthorized acts of agents, and whether any liability can be based on principles of tort law.
ii. What should a business do to prevent this sort of thing from happening?
iii. Assume Marcus was upset with the park but had NOT been fired when he enacted his plan. Since Marcus was still employed at the park at the time he ordered the faulty pamphlets, what duty or duties of an agent to a principal, if any, would he have violated? Identify the duty (loyalty, notification, performance, obedience, accounting) and explain how it was violated using the facts provided.
d. Over the last several years Wiley’s mental health has slowly taken a turn for the worse. Wiley has remained the owner of the park, but has largely stepped aside in his role as chief executive officer. Recently, Wiley became suspicious that Petunia was embezzling funds from the park. During a period of lucidity, he created a durable power of attorney that gave Peter the right to sign legal documents on behalf of the park and otherwise make management decisions. This durable power of attorney was to go into effect should a doctor deem Wiley’s mental incapacitation permanent. Last week Wiley’s mental capacity fell into a permanent state of non-communication, and he was committed to a permanent care hospital after a physical by a physician who determined that he was unable to care for himself or capable of making any decisions. Explain what, if any, power exists for Petunia and Peter by explaining the difference between a power of attorney and a durable power of attorney, and reach a conclusion as to who should now be in control of the business.
a. Based on principles of agency law, discuss who would bear any liability for Greti’s injuries? First discuss the legal relationship between Dudley and Macy’s, and between Dudley and Sweet Smelly Goodness, Inc., then discuss under what conditions the principal can be liable for acts of the agent, then apply these principles to Dudley’s actions and reach a conclusion.
b. If Greti sues Dudley, personally, explain what defenses Dudley can use to argue that the principal is liable for his actions?
c. If the customer succeeds in a lawsuit against Sweet Smelly Goodness, Inc., and has to pay Greti a large jury verdict for compensatory damages, under what circumstances could Sweet Smelly Goodness have the legal right to seek reimbursement from Dudley personally? Why or why not?
a. Luther is a shrewd businessman and wanted to incentivize Rufus to sell as many bells as possible. Because of this, Luther created an employment contract that only paid Rufus if he sold more than a thousand bells a month. If he didn’t sell a thousand bells, he didn’t get paid. What duty, if any, is violated and why?
b. If Rufus doesn’t feel like he’s been paid a proper commission by Luther what remedy, if any, does he have?
c. In an effort to increase sales, Rufus purchased a number of Cincinnati Bengals tickets at $150 per ticket to give to some prospective customers. When Rufus told Luther about the purchase in order to obtain reimbursement, Luther said he would only pay for those tickets that generated sales. Rufus hadn’t kept track which tickets generated any sales. Should Rufus be compensated for his purchase? What duties, if any, were violated and why?
d. A potential customer told Rufus that they would love to purchase 10,000 bells from Luther (a huge order), but that they would only do so if Luther made a minor modification to the design. Without consulting Luther, Rufus told the customer that Ringer’s Zingers would never modify their design. Rufus then contacted his old employer, Bevins Bells, (who he knew would sell the modified bell) and closed a deal for them with the customer in return for a tidy commission. What duties, if any, were violated and why?
e. Rufus closed a deal with an internet retailer, Big Ten Sports Fan Fun (BTSFF), selling them 10,000 bells for each Big Ten school, with school emblem decals, which were a best seller to students and alumni who like to take the bells to football games and make lots of noise in the stands. BTSFF was so appreciative of the deal that they gifted Rufus and Ringer’s Zingers with 4 tickets to the Big Ten championship game, the Rose Bowl, and the BCS Bowl. Instead of reporting the gift to Luther, Rufus decided to keep them. Rufus sold the tickets to two of the games and kept the BCS tickets. What remedy, if any, might Luther have to recover the tickets and/or the profits Rufus made from selling them?
a. If Sheena or Boris made a unilateral mistake regarding scheduling, which causes a vendor to sue for its lost profits caused directly by the delay, who is liable for these damages? Be sure to discuss the difference between a disclosed and undisclosed agent, and the principal’s rights and remedies against its agents.
b. Boris misrepresents the danger in transporting the chemicals to the delivery company that he contracts with to transport the chemicals to ChemCorp, in order to secure a better price. This causes the transport company to not take precautionary measures to avoid certain roadway hazards, resulting in a huge explosion when the delivery truck drives over a big pothole. Can ChemCorp be held responsible for the tort committed by Boris? Be sure to discuss the principles of tort liability and the agency relationship including the legal theory of “Respondeat Superior”.
a. You run a boutique clothing shop where you make and sell your own products. There is an upcoming fashion expo at the Dayton Convention Center and you hire a marketing firm to put together and staff a booth for the expo to sell your products. After the show, what action, if any, must be taken to terminate the relationship?
b. You own and operate a successful tavern (bar/restaurant). Your tavern is famous for it’s Wicked Wizzer Wing Sauce and you bottle some of it each month for sale at the restaurant. The sauce is quite popular, bringing in good profits, so you decide to hire an independent contractor, Damian, to approach local food and beverage stores and to enter into contracts to stock and sell your sauce in their stores. When he obtains no contracts in the first 6 weeks, what action, if any must you take to terminate the relationship with Damian?
a. Discuss what type of agency relationship exists between Tom and Build-It-Big. Is Tom an employee or an independent contractor? Be sure to define both terms and explain what facts lead you to conclude Tom’s legal status, using the criteria outlined in your text.
b. Who is responsible for the damages incurred in the accident when Tom caused a wreck while driving the company van? Be sure to discuss the legal principles that would cause a principal to be responsible for the acts of its agents, and apply ALL elements listed in your text.
c. Would the application of liability be any different if Tom was running to Home Depot to pick up some electrical supplies for the job site? Why or why not?
d. Would the application of liability be any different if Tom had taken the van in a fit of jealous rage to run over his no-good, cheating wife, Brunhilde? Why or why not?
Excerpt from file: Runninghead:AGENCYANDLIABILITYTOTHIRDPARTIES AgencyandLiabilitytoThirdParties Name Institution Instructor Course Date 1 AGENCYANDLIABILITYTOTHIRDPARTIES 2 CASESTUDYQUESTIONS Question1 a).Agencyrelationshipisarelationshipoftrust(fiduciaryrelationship)inwhichanagentactson
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