1.Mauricio, Iragorri fell to his death down an empty elevator shaft after a repair person employed by International Elevator, Inc. (International), propped open the elevator door with a screwdriver and left the entrance-way unattended and unbarricaded while the elevator car was not in place. Mr. Iragorri's surviving spouse, Haidee Iragorri, brought suit against the manufacturer Otis Elevator Company. Her complaint alleges that International (the company that maintained and repaired the elevator in question) was negligent in its duties, and that the negligence of International is attributable to Otis Elevator on a principal/agent theory.

A.What are the required elements that Ms. Iragorri must prove to show that International was the agent of Otis Elevator? Explain.

B.What factors may Otis Elevator establish to show that International was an independent contractor and thus not liable for International's negligence?

[Hint: agency; independent contractor]

2.In 2016, Kora Nayenga and two business associates formed a corporation called Nayenga Corporation for the purpose of selling computer services. Kora, who owned 50 percent of the corporate shares, served as the corporation's president. In 2018, Kora wished to obtain a personal loan from his bank for $250,000 to buy a second home on Lake Sunapee, but the bank required the note to be cosigned by a third party. Kora cosigned the note in the name of Nayenga Corporation. Later, Kora defaulted on the note, and the bank has now sued the corporation for payment.

A. What is the most likely outcome of the bank's efforts to collect from the corporation?

[Hint: agency; liability of a corporation to third parties for acts of an officer as its agent]

3.Adam Rich owns a jewelry store in Asheville, NC. His store sells very expensive jewelry. Because he owns many other similar stores, he hires Mike Missing to manage this store. Adam, however, specifically instructs Mike that he is not permitted to buy any items worth more than $100 without his approval. Per their contract, the agreement must remain confidential between Adam and Mike. Having a poor memory, Mike purchases ten diamond rings worth $1,000 each from Shiny Diamonds Inc. Mike paid for 5 of them from his personal bank account and five others are yet to be paid for. Adam refuses to pay for the rings. While selling one of these rings, Mike accidentally trips and injures the customer buying the ring. He tripped because he was trying to balance a cup of coffee on his nose.

A. Is Adam liable for the payment of the five rings to Shiny Diamonds, if the company finds out that the rings where purchased for Adam's store? Explain.

B. Is Adam liable to Mike for the five rings he paid out of pocket to Shiny Diamonds Inc.? Explain.

C. Is Adam liable to the customer who was injured due to Mike's actions? Explain.

[Hint: agency and liability of principal to third parties in contracts and torts]