Question
Eddy Smith is the President and CEO of We Are Toys, Inc. We Are Toys manufactures and distributes educational toys for children ages birth to
Eddy Smith is the President and CEO of We Are Toys, Inc. We Are Toys manufactures and distributes educational toys for children ages birth to twelve years. We Are Toys has been trying to break into the mass merchandising market but has so far been unsuccessful in convincing any of the major retailers to carry their toys. One day Boris Badenoff walks into the Personnel Office at We Are Toys and inquires about employment opportunities as a sales representative. He is told that We Are Toys does not currently have any openings. Boris then talks with the toy buyer at Target and convinces Target to carry a line of We Are Toys merchandise. A written contract is prepared and signed by Target. Boris signs as follows: We Are Toys, Inc., by Boris Badenoff, its agent. Boris then has a conversation with Eddy Smith, during which he presents the signed contract and says, Dont you think you ought to hire me? Is We Are Toys liable on the Target Contract? Explain. Does Boris have any liability to Target? Explain.
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