M4D2

Chris was the agent in charge of distribution and collections for Nothing But Cheese Store. Jacob operated a grocery store and purchased cheese from Nothing But Cheese Store. Chris made false invoice sheets, showing delivery to Jacob of greater quantities than Jacob actually had ordered or received. Chris collected money from Jacob on the basis of these increased amounts, and then kept the overcharged amount herself. When Jacob figured out what was happening, he sued Nothing But Cheese Store for the excess payments he had made. Nothing But Cheese Store claimed that Chris was not its agent relative to her criminal behavior.

What is a court likely to decide? Why would Jacob want to sue Nothing But Cheese Store instead of Chris? Can Jacob sue Nothing But Cheese Store without suing Chris?