Question
Doncaster Ltd (Doncaster) is a major appliance wholesaler that had a long-standing business relationship with Hardy Bowman, an appliance retailer. They have had existing dealings
Doncaster Ltd (Doncaster) is a major appliance wholesaler that had a long-standing business relationship with Hardy Bowman, an appliance retailer. They have had existing dealings going back eight years. Throughout these years, when Doncaster's sales agents wished to transact with Hardy Bowman, they reached out to Hardy Bowman's acquisition manager, Julie Barber, who has been Hardy Bowman's acquisition manager. Two months ago, Julie emailed her contact at Doncaster and informed them that business for appliances has been booming, and her company needed more microwave ovens for its inventory as the company is planning to expand and open more retail outlets in Victoria. She also indicated that Doncaster could expect more regular orders. She then placed an order four times larger than the largest order she ever placed with Doncaster. Doncaster was happy with this order and rewarded Julie by giving her an all-expenses-paid trip to Noosa in Queensland which she gladly accepted without informing her employer. A few weeks later the microwaves that Julie ordered arrived at Hardy Bowman's warehouse in Dandenong and were accepted by its receiving department. The goods were then incorporated into Hardy Bowman's inventory. One month later, while payment of invoices for the month was being processed, Hardy Bowman's accountant noticed the unusually large payment request going to Doncaster Ltd and alerted the CEO of the transaction and Page 2 of 13 sought approval of the payment. The prices for some items had also increased by 10% compared to the price paid for the same goods in the past. The CEO was very unhappy with what Julie had done and instructed for the order to be cancelled and payment not to be made. Doncaster responded by requesting full payment for the appliances delivered. In another matter, Julie contracted with Ringwood Ltd (Ringwood), another appliance wholesaler, in her name to purchase a certain quantity of portable fans at heavily discounted prices. She did not wish to sign the contract in Hardy Bowman's name because doing so would have caused Ringwood not to proceed with the contract due to a past deal that went bad, which she was not personally involved with. Before delivery of the goods, Julie left her job at Hardy Bowman due to the incident involving the transaction with Doncaster. Hardy Bowman wishes to take delivery of these goods as the deal is lucrative, especially considering the rise of appliance prices since Julie made the deal.
Discuss the potential rights and liabilities of the parties under agency law. Do not discuss issues that may arise under the Goods Act Vic (1958) and the Australian Consumer Law
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started