Agency Law

Sam Best is the sole owner of Best Buy Auto Center, Inc., a used-car business. Sam's hired assistants at Best Buy include three sales representatives, a mechanic, and a receptionist who also helps with the bookkeeping.In addition, Sam has engaged the services of a janitorial service company that sends its employees to Best Buy two evenings a week to clean the premises.

a) One day, Barry, one of the salespersons, anxious to make a sale, intentionally quotes a price to a customer that is $500 lower than Sam Best has authorized for that particular car. The customer purchases the car at the quoted price and pays for it with a cashier's check.When Sam learns of the deal, he claims that he is not legally bound to the sales contract because he did not authorize Barry to sell the car at that price.Applying the IRAC method, discuss whether Sam is bound by the contract?

b) Suppose that Sam tell Barry and another sales representative, Jeff, to deliver a car that has just been sold to the purchaser's home.Jeff is told to drive the customer's car, and Barry is to drive another car from the lot, follow Jeff, and give him a ride back to Best Buy.Jeff and Barry decide to stop for lunch at the deli located on the route to the customer's house.When Barry turns into the deli's parking lot, he negligently crashes into a car pulling out of the lot.Applying the IRAC method, discuss whether Barry and/or Best Buy can be held liable to the owner of the other car for damages?