Joe is shopping for a new TV at Big Screen City Ltd. The company's return policy applies to regularly priced products, only. The salesperson who is new to the job, mistakenly tells Joe he may return any TV within seven days if he returns the bx and packaging materials as well. Joe relies on this representation when he chooses a very large plasma television on sale for 10 percent off the regular price.

When Joe returns home, he learns his wife just lost her job. He immediately returns to Big Screen City with the TV and the packaging materials. The manager tells him the store policy does not allow for returns of sale merchandise.

In this example, who is the agent, who is the principal, and who is the third party?

Is this an example of actual or apparent authority? Explain your answer

Catwatch Ltd, a cat-sitting service, has just started up a business and wants to open a commercial bank account with the Caring Bank. Before signing an account agreement, what does Catwatch need to consider?