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ETHICAL DILEMMA When Should an Agent's Power to Bind His Principal Terminate? Facts Tim Banks was an employee of service to the company. Though the supply bills from April through November Golden Harvest Florists International (GHFI). company would not tell Tim why he had 2014, but, when his funds were low in GHFI operated a wholesale florist business been fired, Tim learned that GHFI felt December, he charged the flowers to GHFI. on the East Coast and also maintained a threatened by his reputation and was GHFI refused to pay, and the greenhouses small chain of retail shops in the worried that he was becoming better have filed suit against Tim and GHFI. Washington, D.C.-Baltimore area. Tim, known and more important than the whose responsibilities included buying company itself. Social, Policy, and Ethical Considerations large quantities of fresh cut flowers from GHFI did not, moreover, notify any of 1. Who is legally responsible for the bills? various greenhouses along the East Coast, Tim's suppliers of his release until January Who is ethically responsible? had established an excellent rapport with 1, 2015. The company was worried that 2. What is the social policy behind the all of his suppliers and was well respected notice might undermine the suppliers' requirement of notice prior to throughout the entire industry. confidence in the company and could termination of a principal-agent Because of his good reputation, Tim possibly cause prices to rise. Meanwhile, relationship? was shocked to discover on April 1, 2014, deciding to begin his own business, Tim 3. Does Tim have a responsibility to the that he had been released by GHFI. This continued to purchase flowers from the greenhouses to notify them of the source notice came after five years of faithful same greenhouses. He was able to pay his of his funds, as long as the bill is paid? An