Question
Gregory Johnson of Durham, North Carolina, was engaged in the wholesale of furniture as an individual or sole proprietorship.He was contacted by Haverty's Furniture Stores
Gregory Johnson of Durham, North Carolina, was engaged in the wholesale of furniture as an individual or sole proprietorship.He was contacted by Haverty's Furniture Stores of High Point, North Carolina, with a proposal that he sell to Haverty $150,000 worth of furniture on credit terms which extended over a period of 90 days.Haverty was engaged in the retail sale of furniture in the High Point area.Johnson investigated the credit of Haverty and decided he was unable to make the sale and extend the credit based on the financial condition of Haverty.Johnson then engaged in a conversation with Avery Knight, who owned one-sixth of the capital stock of Haverty and was a director of the company.Knight was also a substantial stockholder in, and president, of Greenway Furniture Stores, a retail store in the Greensboro area.THe corporate charter of Greenway provided for the conduct of the business of the retail sale of furniture.As a result of the contracts between Knight and Johnson, Knight agreed that Greenway would guarantee the payment of the account of Haverty.Johnson then forwarded to Nichols a corporate guaranty agreement for the board of directors of Greenway to approve, sign, and return to him.The corporate guaranty agreement was never approved by the board of directors, and was not returned to Johnson.Johnson contacted Knight with respect to the failure to return the written guaranty agreement and Knight told him that his attorney had advised him that due to the loan agreement that Greenway had it should not sign the guaranty.Knight then told Johnson that he was willing to give Johnson a letter signed by him as president of Greenway guaranteeing the payment of the account on the part of Greenway.The letter was forwarded to Johnson, and Johnson began to sell to Haverty and continued to extend credit to it.Haverty entered into bankruptcy owning Johnson $150,000.Johnson made demand upon Greenway for the payment of this amount.
Is Johnson entitled to recover against Greenway?
3. Scotty Pippin tells Patrick Ewing, "If you want to buy a championship trophy, see Horace Grant." Pippin has never given Grant authority to sell the championship trophy.If Ewing contracts with Grant, is Pippin bound? Why or why not?
4. Kim Khardashian hires Hollywood bigwig Oprah Winfrey to be her agent. Is a writing required? Why or why not?
5.Ariana Grande, Taylor Swift's office manager, buys supplies from Staples without permission.Grande knows Swift has paid without objection.If Grande keeps buying for Staples, is Swift bound? Why or why not?
6.Sue, an Arco truck driver, goes to a pub nine blocks off her route for a beer.Returning to her route an hour later, she hits a pedestrian.Sue finishes by 5 p.m., the stopping usual time.
a) Is Arco liable to the pedestrian for Sue's negligence?
b) If Sue was acting within the scope of her employment, from whom can the
pedestrian recover?
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