Module 09 Exercise #1 - Methods of Carrying on Business

.docx

School

Humber College *

*We aren’t endorsed by this school

Course

5505

Subject

Business

Date

Apr 3, 2024

Type

docx

Pages

2

Uploaded by GrandDangerFinch30

Report
BUS 5505-0NB: CANADIAN BUSINESS LAW Richard Ittleman MODULE 09 – EXERCISE #1 – METHODS OF CARRYING ON BUSINESS By submitting an answer on Blackboard to this exercise, you will receive 1 Class Participation credit. Your answer will not be graded, but you will be provided with feedback for self-assessment. Your task: Briefly answer the following short questions. Please double-space your answers. Upload your answers to Blackboard. A suggested answer will be provided for self-assessment. You may answer in point form if you wish. 1. Joe is shopping for a new TV at Big Screen City Ltd. The company’s return policy applies to regularly priced products only. The salesperson, who is new to the job, mistakenly tells Joe he may return any TV within seven days if he returns the box and packaging materials as well. Joe relies on this representation when he chooses a very large plasma television on sale for 10 percent off the regular price. When Joe returns home, he learns his wife just lost her job. He immediately returns to Big Screen City with the TV and the packaging materials. The manager tells him the store policy does not allow for returns of sale merchandise. a. In this example, who is the agent, who is the principal, and who is the third party? In this scenario: - Joe represents the third party. - The salesperson acts as the agent. - Big Screen City Ltd serves as the principal. b. Is this an example of actual or apparent authority? Explain your answer. This situation is a prime example of seeming authority. Erroneously, the salesman tells Joe that he has the power to accept returns on sale items for a period of seven days, provided that the box and packing materials are returned. Joe assumes this representation is true and depends on it in a reasonable manner. The salesperson appears to have authority even if they don't have any because of their job and the things they do while working.
2. Siblings Jack and Jill own a house-cleaning business. One day, Jack forgets to lock the door of a client’s house when he leaves. The house is robbed, and the owners suffer a loss of approximately $20,000. The homeowners decide to seek damages in the Small Claims Court. a. Who will the owners name as defendants in their lawsuit, and why? The homeowners will likely name both Jack and Jill as defendants in their lawsuit. As joint owners of the house-cleaning business, both Jack and Jill bear responsibility for each other's actions during business operations. Consequently, both siblings could be held liable for any damages resulting from negligence or wrongful acts committed in the course of their business. b. Other than ensuring the door was locked, what steps might Jack and Jill have taken to protect themselves against such a lawsuit? Jack and Jill might think about the following to protect themselves from this kind of lawsuit: - Creating strict policies and guidelines for protecting clients' belongings, such as meticulous inspections to make sure all windows and doors are safely shut after they leave. - Purchasing insurance, such as liability insurance, that is designed to guard against losses or damages resulting from commercial operations. -Offering thorough instruction and oversight to guarantee that all workers—including themselves—follow workplace security and safety procedures. - Drafting precise contracts or agreements with clients that specify obligations and liabilities for each party, including security and indemnity provisions.
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
  • Access to all documents
  • Unlimited textbook solutions
  • 24/7 expert homework help