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Short Answer problems

1. Bart agrees to put Sam’s Super Bowl championship autographed football in his sports store to sell for $1,500. Sam agrees to pay Bart a 15% commission for selling the ball. If Joe comes in the sports store and offers Bart $1,200 for the ball, could Bart accept this offer?

2. What type of notice must a principal who no longer wishes to be bound by the acts of his former agent give in order to prevent the agent from continuing to make contract in the principal's name.

3. Hardy is a CPA who prepares Hunter’s tax return for a fee. Hardy prepares Hunter’s return at the end of the filing season when he is really rushed for time and he misses many deductions which cost Hunter hundreds of dollars in tax liability. What responsibility does Hardy owe to Hunter?

4. In the problem above, suppose Hardy is just Hunter’s neighbour who knows something about taxes and he does Hunter’s return gratuitously. What is Hardy’s responsibility to Hunter in this situation?

5. Mr. Donnie Dim worked as a research assistant for the law firm as he was attending State U School of Law. He found the way to hack into proprietary legal research databases and do his research at little or no cost to his firm.  His performance was so good that law firm offered him a full time job on graduation from law school.  The hacked databases determine about Danny’s scam and sue the law firm for damages.  The law firm claims it didn’t know of Donny’s actions and will not have condoned it. Was Danny acting as the firm’s agent?

Case Problem

Mary Fletcher entered into the exclusive listing agreement with Robert Hicks, a licensed real estate broker, to have him help her sell some land and buildings. During the period of the listing agreement, Hicks was in contact with the number of prospective buyers, including Walter Steere. When listing agreement expired and the property was still unsold, Fletcher and Hicks agreed that Hicks will continue to market the property for her. Soon afterwards, Hicks told Fletcher that he had the offer from Steele to buy the property for $1 .1  million. After Fletcher accepted

Steele’s offer, she learned that Hicks and Steel had purchased the property together as partners. Has Hicks violated his agency duties to Fletcher? Describe.

Business Law & Ethics, Finance

  • Category:- Business Law & Ethics
  • Reference No.:- M91479

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