Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 2 (6 points) Joe is an employee and agent for Harry's Fine Cars Ltd. The manager, Fred, told Joe that he had no authority

image text in transcribed
Question 2 (6 points) Joe is an employee and agent for Harry's Fine Cars Ltd. The manager, Fred, told Joe that he had no authority to make any sale, take a trade-in, or otherwise deal with the vehicles without Fred's express approval of every deal. Sam, a customer, came in wanting to buy a used Cadillac and agreed to pay the $60,000 asking price. Unfortunately, Fred was away from the lot, and so Joe took it upon himself to write up the agreement. When back, Fred reviewed the contract and was happy with it. However, the customer came back saying he not like the deal and wanted a full refund. A. What is the main legal issue? B. Must Fred honor the contract? Did Joe have the authority to bind the seller in contract? Explain with reasons

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The BRC Global Standard For Food Safety A Guide To A Successful Audit

Authors: Ron Kill

2nd Edition

0470670657, 978-0470670651

More Books

Students also viewed these Accounting questions