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Santa Barbara Corporation (SBC) signed a three-year contract with Gus, a newly certified public accountant, making him SBC's newest employee. Gus was hired to work

Santa Barbara Corporation ("SBC") signed a three-year contract with Gus, a newly certified public accountant, making him SBC's newest employee. Gus was hired to work in SBC's cost-accounting division. He was given a cubicle, telephone, and computer with which to work but no authority to hire or supervise others. Gus then hired Lassister, an outside (and experienced) accountant, to advise him on certain accounting procedures but failed to pay Lassister for his services. SBC had previously hired Shawn, a salesperson and at-will employee, to solicit orders for its products. Shawn obtained an order from Chief Industries, Inc., and assured Chief that the order would be filled soon. Chief thanked him for the confirmation of speedy delivery and explained that it needed the materials from SBC to complete work on "the biggest project in the history of our company."Sadly, Shawn later got distracted by YouTube videos of cats knocking things off tables and did not follow through with the paperwork. Since Shawn failed to submit the order to SBC, SBC never shipped the requested materials to Chief and Chief suffered a loss.Lassister and Chief Inc. both claim that SBC is liable to them. Discuss whether SBC is (and why and for what, or why not). Use the IRAC method.

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