Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hugo Chief is a designer clothing retailer, owned and operated by Reinhardt. Reinhardt has one employee, Trevor. In keeping with the fashion trend of combining

Hugo Chief is a designer clothing retailer, owned and operated by Reinhardt. Reinhardt has one employee, Trevor. In keeping with the fashion trend of combining sports shoes with formal attire, Reinhardt wants to offer his customers a range of Nike shoes to complement his outfits. Together, Reinhardt and Trevor meet with Nike salesperson, Brent.Reinhardt explains that he wants to reinvigorate his brand, appealing to a more comfort driven fashion market. Brent provides Reinhardt and Trevor with some product information and they leave.

Reinhardt reviews the Nike products and later tells Trevor, 'I have a $30,000 budget for the Nike shoes.I want you to buy Nike Air Force shoes in a variety of colours- do not spend more than $30,000.' The following day, Trevor meets with Brent. Brent recommends that Trevor buy the Nike Air Jordans. Trevor prefers the Air Jordans to the Air Forces andpurchases theAir Jordanson credit for $70,000and signs the contract, 'Trevor, on behalf of'Hugo Chief'.

The shoes are delivered the following weekend to coincide with the re-opening of the newly renovated Hugo Chief store. Reinhardt isangry.He says toTrevor: 'I told you to buy Nike Air Force shoes not Nike Air Jordans. My customers cannot afford Jordans! I told you that the budget was $30,000 -Hugo Chief cannot afford $70,000. I refuse to pay for this.'

Using relevant legal principles of agency law only, discuss whetherTrevor had the authority to purchase theNike Air Jordan shoes on behalf ofHugo Chief. WillHugo Chief be required to pay the invoice?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essential Criminal Law

Authors: Matthew R Lippman

1st Edition

1452276935, 9781452276939

More Books

Students also viewed these Law questions

Question

Prepare a balance sheet as of December 31, 2011. LO.1

Answered: 1 week ago