Question
Facts : Cold Case Trucking (CCT) specializes in transportation of products that require refrigeration or freezing while being transported from the product's manufacturer to a
Facts: Cold Case Trucking (CCT) specializes in transportation of products that require refrigeration or freezing while being transported from the product's manufacturer to a wholesaler's warehouse. In an effort to improve its shipping logistics operations, CCT hired Crusoe, who had experience in operations logistics, as a consultant. CCT and Crusoe agree that Crusoe will study CCT's operations by conducting interviews with employees and customers, then design a new logistics plan and oversee its implementation. The parties agreed that Crusoe would give regular updates on his progress by attending weekly CCT management meetings. Because the CCT project was so time-intensive, Crusoe devoted 100 percent of his work time to CCT. The company also agreed to pay Crusoe $200 per documented hour for work on the project upon receiving an invoice from Crusoe and to make office space available at CCT's headquarters for Crusoe's exclusive use.
Assume that part of Crusoe's agreement with CCT allowed Crusoe to use CCT's account at a local office supply store. Over a period of three months, Crusoe would order any office machinery or supplies he needed for his work directly from the store. The store billed CCT directly and was paid (along with any other charges by authorized CCT employees) within 30 days of receiving the bill. Suppose that a dispute arises between CCT and Crusoe about the quality of Crusoe's work and CCT terminates the consulting agreement. The next day Crusoe picks up a new computer from the office supply store, charges it to CCT's account, and absconds with it.
a. CCT will probably be held liable for Crusoe's computer purchase under the theory of apparent authority.
b. Because Crusoe's authority terminated when CCT terminated him CCT cannot be held liable under the theory of express authority.
c. Crusoe status as an independent contractor has no impact on CCT's liability for Crusoe's purchase of the computer.
d. If CCT sent a simple notification to the office supply store informing them that Crusoe was no longer associated with CCT, CCT could have avoided liability on the computer purchase by Crusoe.
e. All of the above.
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