Clark-BUS 201-Celigh Corporation contracts with Jameson PLLC to build an addition to Celigh’s
Question # 00373362
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Updated on: 08/29/2016 03:46 AM Due on: 08/29/2016
- 1. Celigh Corporation contracts with Jameson PLLC to build an addition to Celigh’s corporate office building. Jameson contracts with Proforce Company for materials for the addition but refuses to pick up the materials. Meanwhile, Celigh hires Shawn, a certified public accountant, to work in its cost-accounting division as an employee, with no authority to hire or supervise others. Shawn asks Ted, an outside experienced accountant, to advise her on certain accounting procedures but fails to pay Ted for the service. Celigh also contracts with Dianne, a salesperson, to solicit orders for its products in a designated territory. Dianne obtains an order from Verity Industries, Inc., which is assured the order will be filled soon. But Dianne does not follow through with the paperwork and fails to submit the order to Celigh. Verity suffers a loss. Proforce, Ted, and Verity Industries claim Celigh is liable under agency law. Discuss fully whether an agency relationship was created by Celigh with Jameson PLLC, Shawn, or Dianne.
- 2. Brannin contracts with Lucy to buy a certain candy shop, Candy’s Hop, for Lucy, who asks Brannin not to reveal her identity. Brannin makes a deal with Kenneth, the owner of the restaurant, and makes a down payment. Lucy fails to pay the rest of the price, and does not pay Brannin for his services. Does Brannin have any recourse against Lucy? If so, on what basis and to what extent?
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Rating:
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Solution: Clark-BUS 201-Celigh Corporation contracts with Jameson PLLC to build an addition to Celigh’s