Patty is the owner of a wholesale business selling household goods. Atif had been working for Patty for some time as a salesman, being paid on a commission basis, selling Patty'sproducts to retailers. He keeps a store of Patty's goods in his shed on his property.Unfortunately, Patty and Atif had a major argument and Patty told Atif she did not want him working for her any more. Following this, Patty wrote to her regular customers, telling them of her decision.

Following their argument, Atif did not return all the stock he had held in store for Patty and feeling angry with Patty, decided to sell it and keep the money for himself. He found that Terry owned a retail store selling household goods. Terry had not dealt with Atif before buthad heard from one of Atif's other customers that Atif worked for Patty. Atif sold Terry $10,000 worth ofPatty's goods, took Terry's payment and has now disappeared.

Terry discovered that more than half of the goods were damaged and he wants a refund from Patty. Patty is refusing to give Terry a refund, claiming that she had nothing to do with the sale.

Using relevant cases, discuss the legal issues in this scenario and explain how this dispute is likely to be settled.