Donald is a salaried employee of Vlad.Donald occasionally receives a performance bonus from Vlad.Vlad owns an electronics store in Philadelphia. Donald is perceived as Vlad's "go-to" guy.Donald keeps track of the latest technology, orders merchandise from suppliers, manages the inventory and counts the money at the end of the business day for the bank deposit. In short, Vlad would be lost without Donald.

One day Donald approaches two of his friends, Mike and Rudy, who are looking to invest in a business enterprise. Donald tells them that Vlad is going to open two new stores and is in need of cash. Donald shows them a business plan for the expansion that he claims to have drafted for Vlad, and claims that Vlad approved the plan. He states they will get a return on their investment, to be determined within a couple of weeks.

Mike and Rudy give Donald $25,000.00 in cash. Within a week, Donald moves out of state - without notice-- with the $25,000.00, and without leaving a forwarding address. When approached by Mike and Rudy, Vlad truthfully informs them that he knows nothing of Donald's business plan, the $25,000.00, or any plans to expand his business.

Mike and Rudy have come to your office seeking to file a lawsuit against Vlad to hold Vlad responsible for the $25,000.00. Assume for this assignment thatGaines v. Kelly, page 212 andWalker Insurance Services v. Bottle Rock Power Corp(attached) are the controlling precedent in Pennsylvania.

Based onGaines v KellyandWalker Insurance Services v. Bottle Rock Power Corp.,and the text, will Vlad be liable to Mike and Rudy for the $25,000.00?