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business law question Case Study #2 (12 marks) Matthias employs Jaspreet to manage his cocktail lounge bar. To ease certain aspects of management (like customer
business law question Case Study #2 (12 marks) Matthias employs Jaspreet to manage his cocktail lounge bar. To ease certain aspects of management (like customer complaints and employee scheduling), Matthias allows Jaspreet to represent that she is the owner of the bar. Based off that arrangement, Jaspreet has changed her LinkedIn profile to show herself as the bar's owner and Matthias has placed a plaque above the bar with Jaspreet's photo and the title "Owner". Matthias has also told the other bar staff to refer to Jaspreet as the owner. However, to ensure Jaspreet does not over-step her authority, Matthias has expressly told Jaspreet what she is permitted to do. Matthias states that Jaspreet is authorized to purchase alcohol and water for the bar, but no other goods or services. All other goods and services are to be purchased by Matthias himself. One day, Ling, who sold custom wine glasses walked into the bar looking to make a sale. Ling sat at the bar and requested to speak with the owner. Jaspreet came out to greet Ling and, after a lengthy conversation, Jaspreet agreed to purchase $3,000 in new custom wine glasses. The next day, Matthias came into the bar and found the contract for the wine glasses signed by both Ling and Jaspreet. Matthias was furious, called Ling, and denied that the contract was binding. Ling, however, is adamant that the contract is enforceable. 1. Explain and apply the rules for establishing a valid agency relationship to determine if the contract with Ling is valid and enforceable. For clarity, is there a valid agency relationship and, if so, what form of authority applies on the facts? (6 marks) 2. This question does not relate to the case facts. Assume you and three other students decide to start a partnership selling used textbooks and want to operate as an "LLP". Define what an LLP is and why your partnership would not be able to use the "LLP" designation. (3 marks) 3. This question does not relate to the case facts. Consider the following quote from a recent real property law article dealing with a purchaser of land immediately cutting down 40 trees on the property: "Once the fee simple owner sells their place, the new owner can do whatever they want on the land. While the previous owner may not like that the new owner is cutting down 40 trees, there's no legal concept which would allow an old owner to bind the uses of the land on a new owner." Explain why this quote is incorrect and what legal concept would allow a former fee simple owner to prevent the cutting down of trees by future owners. (3 marks). Case Study #2 (12 marks) Matthias employs Jaspreet to manage his cocktail lounge bar. To ease certain aspects of management (like customer complaints and employee scheduling), Matthias allows Jaspreet to represent that she is the owner of the bar. Based off that arrangement, Jaspreet has changed her LinkedIn profile to show herself as the bar's owner and Matthias has placed a plaque above the bar with Jaspreet's photo and the title "Owner". Matthias has also told the other bar staff to refer to Jaspreet as the owner. However, to ensure Jaspreet does not over-step her authority, Matthias has expressly told Jaspreet what she is permitted to do. Matthias states that Jaspreet is authorized to purchase alcohol and water for the bar, but no other goods or services. All other goods and services are to be purchased by Matthias himself. One day, Ling, who sold custom wine glasses walked into the bar looking to make a sale. Ling sat at the bar and requested to speak with the owner. Jaspreet came out to greet Ling and, after a lengthy conversation, Jaspreet agreed to purchase $3,000 in new custom wine glasses. The next day, Matthias came into the bar and found the contract for the wine glasses signed by both Ling and Jaspreet. Matthias was furious, called Ling, and denied that the contract was binding. Ling, however, is adamant that the contract is enforceable. 1. Explain and apply the rules for establishing a valid agency relationship to determine if the contract with Ling is valid and enforceable. For clarity, is there a valid agency relationship and, if so, what form of authority applies on the facts? (6 marks) 2. This question does not relate to the case facts. Assume you and three other students decide to start a partnership selling used textbooks and want to operate as an "LLP". Define what an LLP is and why your partnership would not be able to use the "LLP" designation. (3 marks) 3. This question does not relate to the case facts. Consider the following quote from a recent real property law article dealing with a purchaser of land immediately cutting down 40 trees on the property: "Once the fee simple owner sells their place, the new owner can do whatever they want on the land. While the previous owner may not like that the new owner is cutting down 40 trees, there's no legal concept which would allow an old owner to bind the uses of the land on a new owner." Explain why this quote is incorrect and what legal concept would allow a former fee simple owner to prevent the cutting down of trees by future owners
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