John Jewelry owns a jewelry store located in a major mall in Iowa. His store is known for selling items worth no less that $5,000 each. Because he owns many other similar stores, he hires Mike Missing to manage this store. John, however, specifically instructs Mike that he is not permitted to buy any items worth more than $10 without his approval. He is to keep this agreement secret between the two of them. Having a poor memory, Mike purchases 100 diamond rings worth $15,000 each. John refuses to pay for the rings. While selling one of these rings, John accidentally trips and injures the customer buying the ring. He tripped because he was trying to balance a cup of coffee on his nose. John asks for some legal help in determining his potential liability stemming from the above facts.