Question
A funeral home business, named Williams & Sons Funeral Home was owned by Sam and his Cick is a mortician who works for the funeral
A funeral home business, named Williams & Sons Funeral Home was owned by Sam and his Cick is a mortician who works for the funeral home but is not a partner (although he badly wants to be made one). One afternoon, Daniel, Sam, and Rick go to the funeral supply store to stock up on embalming fluid. Daniel and Rick have just worked a funeral and are therefore wearing nice well- tailored dark suits. Sam, on the other hand, has been doing some mechanical work on the company vehicles and looks like a bum. While Daniel is off buying embalming fluid, Sam and Rick check out the new caskets. Williams & Sons' casket supply is low, but the business does not have much cash on hand, so it would have to re- stock its supply using credit. When a salesman approaches, Sam identifies himself as Sam Williams, a partner in Williams & Sons, and asks if the funeral supply business would sell him and his partner a few caskets on credit. The salesman is less than impressed with Sam's attire (Sam looks and smells terrible), but he notices that Rick is wearing a beautiful black Armani suit and obviously hasaccess to some cash. Nodding toward Rick, the salesman asks Sam, & "Is he your partner?"& "Sam says yes," and Rick simply smiles, delighted to have been called & partner. The salesman agrees to sell the caskets on credit. When the bill comes due, Williams & Sons is unable to pay the bill, and Daniel and Sam skip town.
Can the funeral supply business recover the amount due from Rick? Give reason for your answer. (10 marks)
b. What if, Daniel had not left town, could the funeral company recover the amount from him? Discuss. (15 marks)
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