Maria Ordered Supplies From Ftc Enterprises

1880 WordsMay 24, 20168 Pages
11. Maria ordered supplies from FTC enterprises. Bob, the owner of FTC enterprises, sent a credit application form to Maria. A couple of days later, Maria sent back the credit application with a signature that appeared to be under her name. Bob shipped the supplies thereafter awaiting Maria’s payments which never came. Bob later sued Maria for payment collection, but Maria denied ever signing the paperwork and claimed that all credit documents were referred to her receptionist. Is Maria liable? In this case Maria is considered as a disclosed principal and Maria’s receptionist is her agent. A disclosed principal is defined as a principal whose identity is known by a third party (Clarkson, 2015, p 644). FTC being the third party in this situation, recognizes Maria as a principal and recognized her receptionist as an extension of Maria’s authority. By referring credit documents and inquiries to her receptionist, Maria is granting her receptionist implied authority to process credit documents on her behalf (Clarkson, 2015, p. 643). Therefore, Maria will be held liable regardless of whether or not she was aware of her receptionist’s actions. 12. Tiffany hires Tim to drive her car for business purposes. Tim informs Tiffany that his driver’s license if suspended, but Tiffany disregards that and still permits him to drive her car. Who will be held liable if Tim gets into an accident who will be held liable? Tiffany will be held liable because she knew that Tim was driving her
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