BUSINESS LAW
BUSINESS LAW
17th Edition
ISBN: 9780357007594
Author: Mann
Publisher: Cengage Learning
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Chapter 9, Problem 14CP
Summary Introduction

To discuss: Whether person S is entitled to recover.

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homas Persson and Jon Nokes founded Smart Inventions, Inc., to market household consumer products. The success of their first product, the Smart Mop, continued with later products, which were sold through infomercials and other means. Persson and Nokes were the firm’s officers and equal shareholders. Persson was responsible for product development, and Nokes was in charge of day-to-day operations. In time, they became dissatisfied with each other’s efforts. Nokes represented the firm as financially “dying,” “in a grim state, . . . worse than ever,” and offered to buy all of Persson’s shares for $1.6 million. Persson accepted.On the day that they signed the agreement to transfer the shares, Smart Inventions began marketing a new product—the Tap Light. It was an instant success, generating millions of dollars in revenues. In negotiating with Persson, Nokes had intentionally kept the Tap Light a secret. Persson sued Smart Inventions, asserting fraud and other claims. Under what principle…
Discuss the various duties, responsibilities, and liabilities of the Principal-Agent (employer-employee) relationship.
Several months ago, Amanda Potter became a trustee of Breakthrough, a UK charity that supports educational and cultural initiatives for underprivileged children. Potter was invited to join the board of trustees by the board chairman, a long-time friend. In the time since her appointment, Potter has begun to learn about the activities of the charity; however, there are still aspects of operations and funding about which she is not altogether clear. There is some disagreement between trustees about whether the main area of activity for the charity should be educational or whether it should focus more on cultural activities. The board of trustees has met only twice since her appointment, and Potter now understands that many of the policy decisions are made by the chief executive of the organisation and his small management team. Since her appointment, Potter feels that she has done very little as a trustee. She is also annoyed that she has twice been asked to find individuals or companies…
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