B law disc response ***Professor Anthony ONLY***

1.

For part A - why would commodities not be responsible to E-products?

Responses:

1. Is Commodities liable to E-Products under the sales contract for the computers, printers and scanners? Why or why not?

No, Commodities shouldn’t be held liable because Brenda is the one who became involved with E-product. Brenda was instructed to get as many computers and support devices as necessary, but then the principle called Brenda and told her specifically what to buy and nothing else.

B. Is Brenda personally liable to E-Products to pay for the computers, printers and scanners? Why or why not?

Yes, Brenda had specific instructions on what to purchase from E-products, she knew that Commodities could not commit to anything beyond what she was told to get.

C. Is Brenda liable to Commodities for exceeding her agency authority and thus liable for paying Commodities for the purchases? Why or why not?

Yes she should be held liable to anything that she purchased above and beyond what she was instructed to purchase. She has a responsibility to the Principle and by ignoring his specific instructions she has breached the contract.

Reference: Suarez, R., Business Law and the Legal Environment, Liability of Principal and Agent; Termination of Agency, Chapter 39 p 1378, 2/21/2014 Retrieved from: http://www.saylor.org/site/textbooks/Business%20Law%20and%20the%20Legal%20Environment.pdf

2. A. Is Commodities liable to E-Products under the sales contract for the computers, printers and scanners? Why or why not? Commodities would be liable to E-products because regardless of the agreement between the purchasing agent and the corporate officer (approver), the purchase was still made by the company. E-Products had apparent authority. What the third party know about the agency agreement is irrelevant to the agent’s legal authority to act, (Advanced Business Law and the Legal Environment, 2014). As long at the agent has authorization, which to E-Products knowledge they did as it was written and signed.

B. Is Brenda personally liable to E-Products to pay for the computers, printers and scanners? Why or why not? Brenda did have an expressed authority signed by Dennis, so she would not be liable to E-products, only Commodities Corp will be liable to E-Products Inc.

C. Is Brenda liable to Commodities for exceeding her agency authority and thus liable for paying Commodities for the purchases? Why or why not? While Brenda did have written authority signed by Dennis, However before she made the purchase at E-products Dennis verbally told her to only purchase 10 computers and nothing else. Brenda would be liable because they both had consideration to the change of the written authority. Most oral contracts are legally binding; the law does not require that they be reduced to writing, (Advanced Business Law and the Legal Environment, 2014). However it is better to have the verbal contract written for proof but they both agreed on the change to the purchase agreement. It is Brenda’s Fiduciary duty to have the responsibility to purchase what is needed as requested to the Employer or Officer in charge, which is Dennis in this case also falls under the general duties.