Fact pattern 29 1 rosa was authorized to purchase

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Anderson's Business Law and the Legal Environment, Standard Volume
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Chapter 36 / Exercise 1
Anderson's Business Law and the Legal Environment, Standard Volume
Jennings/Twomey
Expert Verified
Fact Pattern 29-1 Rosa was authorized to purchase computer equipment for her company, Zebra Toy Company. Her employer required her to obtain written approval from the vice president if she wanted to buy more than $100,000 of equipment. One day Rosa purchased $225,000 of computer equipment from Computer Sales Company, without written approval. 13. Which of the following is correct? a. Zebra Toy is not bound on the contract with Computer Sales. b. Zebra Toy has the option of either honoring or not honoring the contract made by its agent, Rosa. c. Zebra Toy must honor the contract if Computer Sales reasonably believed Rosa had the authority to purchase the equipment. d. Zebra Toy must honor the contract regardless of whether Computer Sales reasonably believed Rosa had authority to purchase the equipment. ANS: C PTS: 1 TOP: AICPA BB-Critical Thinking
MSC: AACSB Reflective Thinking 14. If Zebra Toy Company purchases the equipment: PTS: 1 TOP: AICPA BB-Critical Thinking
MSC: AACSB Reflective Thinking Fact Pattern 29-2 Judy was the manager of an apartment complex. She hired Rick to mow the lawns. One afternoon while Rick is mowing the lawn, his negligence caused damage to Terri's car. 15. If Rick is an employee, who is liable to Terri? PTS: 1 TOP: AICPA BB-Critical Thinking
MSC: AACSB Reflective Thinking 16. If Rick is an independent contractor, who is liable to Terri?
We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Anderson's Business Law and the Legal Environment, Standard Volume
The document you are viewing contains questions related to this textbook.
Chapter 36 / Exercise 1
Anderson's Business Law and the Legal Environment, Standard Volume
Jennings/Twomey
Expert Verified
PTS: 1 TOP: AICPA BB-Critical Thinking
MSC: AACSB Reflective Thinking 17. If Judy had been negligent in hiring Rick, who is liable to Terri? a. The landlord, Judy, and Rick. b. The landlord and Rick, but not Judy. c. Judy and Rick. d. Only Rick. ANS: A PTS: 1 TOP: AICPA BB-Critical Thinking
MSC: AACSB Reflective Thinking 18. Joan agrees to try to negotiate the purchase of an acre of land for a prospective office building on behalf of Cheryl, who does not want to be identified to the seller. Joan tells the seller, “My friend is interested in purchasing this land.” If the seller contracts with Joan, Cheryl is: PTS: 1 TOP: AICPA BB-Critical Thinking
MSC: AACSB Reflective Thinking

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