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1. Joe is shopping for a new IV at big Screen City Lid. The company's return policy applies to regularly priced products only. The salesperson,

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1. Joe is shopping for a new IV at big Screen City Lid. The company's return policy applies to regularly priced products only. The salesperson, new to the job, mistakenly tells Joe he may return any TV within seven days if he returns the box and packaging materials as well. Joe relies on this representation when he chooses a very large plasma television on sale for 10% off the regular price. When Joe returns home, he learns his wife just lost her job. He immediately returns to Big Screen City with the TV and the packaging materials. The manager tells him the store policy does not allow for returns of sale of merchandise. (a) In this example, who is the agent, who is the principal, and who is the third party? (3 marks) (b) Is this an example of agency or apparent authority. Explain your answer. (2 marks)

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