LA 245 Hypotheticals Chapter 17

Roland and Alfreeda enter into a written agency agreement in which Alfreeda will represent Roland as his agent to obtain acting jobs for Roland. No termination provisions are included in the written agreement. If Roland wishes to terminate his agreement with Alfreeda:

Roland must do so in writing because the agency agreement is in writing.

Grover is a sales representative for Avon Products Inc., a company that sells beauty and gift products door-to-door. Ruby, Grover's manager, assigns Grover a certain territory in which to work. The territory that Grover is assigned has historically had one of the highest sales records in the state. Ruby is concerned that Grover is not adequately working the territory, so she allows Regina to also sell in that same territory. Does Grover have any grounds on which to file a lawsuit against Ruby?

Yes, Ruby has violated a principal's duty of cooperation and may be liable to Grover for Grover's lost profits.

Janelle has an art collection that she wants to sell. She calls Amber and tells her to sell the art collection for her at an upcoming auction. Amber agrees. This is an example of what kind of authority?

express authority

Heather is an artist and has several watercolors she would like to sell. Heather orally asks Rylee to sell the paintings for her and directs Rylee that each painting should be sold for at least $100. Rylee schedules a showing in her art gallery to display Heather's paintings. On the day of the showing, a customer offers to buy one of the paintings for $100, and Rylee accepts. When Heather finds out the price the painting sold for, she tries to get the painting back from the customer. Heather claims that she and Rylee did not have a written agency agreement, and, therefore, an agency relationship did not exist between them. Is Heather correct?

no, most agency agreements do not have to be in writing to be effective

An employee is asked to deliver a document to another company 80 miles away. While driving to the other company's office, the employee sees a road sign advertising a casino, 20 miles off the interstate. The employee takes a trip to the casino to gamble for a couple of hours before resuming the delivery trip. While driving in the casino parking lot. she hits a parked car. Is the employer liable for the property damage?

no, she was on a frolic and was not acting within the scope of employment

If Denise is hired to work as a cashier, she has the implied authority to do acts reasonably necessary to carry out her job. True or False?

true

You and a friend are taking a road trip during summer break and decide to stop for lunch. You choose your favorite fast food restaurant. You both order a burger, fries, and a soft drink and chow down. In the afternoon, as you are continuing your journey, both of you begin to feel stomach cramps. They get worse so you decide to go to an urgent care clinic. The doctor there diagnoses you both with food poisoning and prescribes medication. You fill the prescription, check into a hotel, and experience several days of agony. You later discover the cook at the restaurant undercooked the beef in your burger, which caused your food poisoning. You sue the restaurant. Is the restaurant liable to you or is only the employee liable?

the restaurant is liable

Circus Pizza contracted with Art to run its birthday parties. Art's responsibilities included supervising the children and organizing the games. Circus did not investigate Art's background, which included a history of assaulting children. Art assaulted a 7-year-old girl in the restaurant's kitchen during a birthday party. Circus Pizza

may be held liable on the basis of negligent hiring.

True or False? If a principal person accepts the benefits of an unauthorized transaction, or fails to repudiate it, then the principal is bound by the acts as if they had originally authorized it.

true

Fernando worked for Affinity, which made furniture deliveries for Sears. Fernando signed a contract stating that he was an independent contractor. He was paid $23 per delivery. He typically worked 5-7 days a week, but Affinity would call him each day to tell him whether or not he would be working the following day. Fernando was not required to, but he did, lease his truck from Affinity. The company handled upkeep on the truck. Affinity required all drivers to buy their phones and uniforms from the company. it also established personal grooming requirements. Was Fernando an employee or an independent contractor?

employee

Marlo is about to be transferred overseas and wants to sell her house. Julianna, who is not a real estate agent, offers to sell the house for Marlo for free. Marlo jumps at the chance to get such a valuable service for free! Because Julianna offered to sell the house for free, Julianna owes Marlo:

no duty to sell the house, but if Juliana does attempt to sell the house, she owes Marlo to duty to use reasonable diligence and skill in performing the task

An employee is asked to deliver a document to another company 80 miles away. While driving to the other company's office, the employee stops at a diner for lunch. While driving in the diner parking lot, she hits a parked car. Is the employer liable for the property damage?

yes, it was reasonable for her to need to take a detour to get lunch, so she was still acting within the scope of employment