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The Inside Relationship

Questions We Can Help You To Answer

Paper instructions:

In this assignment you will be the judge and decide a case. Using the following fact scenario, prepare a case brief as if you were the judge hearing the matter. In your role as a judge you are to be impartial, and make your ruling based on the law as you understand it. Apply your understanding of the material in chapter 28 of your text, (including the case material), to this brief. Take a look at the “Course Documents” folder and review:"Sample Brief  Answer"; and “Completing Written Assignments”.  

Be sure to use the brief format you have learned. Start with the relevant facts, state those facts that are important for someone to know that has not read the fact scenario in order to understand your brief. Next state what you find to be the issue in the case in a question format, then answer your question by stating your conclusion. State what law you used to make your decision. Spend some time reviewing chapters 28. Finally, in the application section be sure to:
          -Discuss all the possible arguments for each side.
Apply the law to the facts of the case.
State your ruling in the case and your reasons to support your conclusion.


Chapter 28: 

Agency: The Inside Relationship

·  Agency is at the heart of most relationships be it business or personal. 
·  Agency is a relationship of trust where one person acts on behalf and in the best interest of another.
·  Chapter 28 introduces the agency relationship and discusses the elements and duties of the agency parties; i.e., the principal and agent, looking at the relationship from the inside.

Agency: The Outside Relationship

·  Now that you’ve learned about the inner workings of an agency relationship, Chapter 28 will introduce you the third parties’ view of this relationship.
·  From the outside looking in, the issue of liability both contractually as well as tortuously is examined. 
·  You will learn in what circumstances the principal is responsible for the agent’s actions as well as when the agent is personally responsible for his/her own actions.




                                      Fact Scenario:
Bob Corona wanted to own a bar since the day he stepped in one. He opened Bob’s Beer Bash 5 years ago and found out how hard he had to work to keep it in operation. Bob decided that he did not want to spend his retirement dealing with all the stressful responsibilities of ownership. After his 5 years of ownership, he sold his business, Bob’s Beer Bash, to Joe Guinness. Joe agreed to allow Bob to continue to manage the bar. Joe did not change the name of the bar.

Joe authorized Bob to order certain items for the business such as beer, juice, soda, and napkins. Bob would order these items once a month to keep the bar stocked. Bob would place these orders by phone to World Imports, Inc. When the ordered items were delivered, Bob would sign the World Imports Inc. delivery form. Joe would then pay for the items in a timely and reasonable manner.

After a year of ordering these items from World Imports, Inc., Bob decided, on his own, that the Bar menu needed some ‘zip’! So, in addition to these authorized items, for 4 months Bob ordered expensive French wine, Cuban cigars, and Russian caviar from World Imports, Inc. These new additions to the menu brought in a different class of customer that increased the bar’s revenue, as well as Bob’s tip jar.

These items were shipped from World Imports, Inc. each month to Bob’s Beer Bash, but the business was not able to pay for them. For the first 2 months, Joe paid for all of the purchases, primarily because the caviar had been selling so well at the bar. For the next 2 months Joe paid only for the items that he had authorized Bob to order.
World Imports, Inc. sued Bob’s Beer Bash. World Imports, Inc. claimed that Bob’s Beer Bash should have to pay for all the purchases made. Bob’s Beer Bash claimed that it should not be responsible for any of the purchases it had not authorized Bob to make.

702 Words  2 Pages
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