Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. Build-It Construction Company contracts with Classic Beverage Corporation to build Classic Beverages corporate headquarters. Build-It Construction contracts with Dependable Tools & Materials Inc. for

1. Build-It Construction Company contracts with Classic Beverage Corporation to build Classic Beverages corporate headquarters. Build-It Construction contracts with Dependable Tools & Materials Inc. for construction supplies but refuses to pick up the order. Meanwhile, Classic Beverage hires Elmo, a certified public accountant, to work in its cost-accounting division as an employee, with no authority to hire or supervise others. Elmo asks Fayette, an outside experienced accountant, to advise him on certain accounting procedures but fails to pay Fayette for the service. Classic Beverage also contracts with Gloria, a salesperson, to solicit orders for its products in a designated territory. Gloria obtains an order from Highpoint Concessions, Inc., which is assured the order will be filled soon. But Gloria does not follow through with the paperwork and fails to submit the order to Classic Beverage. Highpoint Concessions suffers a loss. Dependable Tools, Fayette, and Highpoint Concessions claim Classic Beverage is liable under agency law. Discuss fully whether an agency relationship was created by Classic Beverage with Build-It Construction, Elmo, or Gloria.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Good Better Best A Guidebook For Performance Auditing

Authors: Gary Blackmer

1st Edition

131265869X, 978-1312658691

More Books

Students also viewed these Accounting questions

Question

Calculate the cost per hire for each recruitment source.

Answered: 1 week ago

Question

What might be some advantages of using mobile recruiting?

Answered: 1 week ago

Question

What external methods of recruitment are available?

Answered: 1 week ago