macroeconomic discussions 1

1. Contractual Liability from an Agent’s Acts

For several years, Albert acted as a collection agent for Paulette. Recently, Paulette revoked Albert’s authority to collect payments from customers. However, neither Paulette nor Albert told any customers of Albert’s termination. Yesterday, Theresa, one of Paulette’s customers, paid Albert the money owed to Paulette. Albert never gave this money to Paulette. Is Theresa liable to pay Paulette? Why or why not?

2. Tort Liability from an Agent’s Acts.

Tammy was shopping in Save-a-Lot Grocery Store when Stewart, an employee, brushed Tammy’s ankle with a grocery cart. A short time later, while still shopping, Tammy told Stewart that he should say “Excuse me.” and then people would get out of his way. Stewart then punched Tammy in the face, knocking her to the floor. If Tammy sues Save-a-Lot, what legal issue must be addressed to determine whether Save-a-Lot is liable?

3. Criminal Liability

(a) Describe how business organizations can be found criminally responsible for their actions.

(b) What is the way such organizations are punished?

4. You and two of your college roommates have discussed plans to open a restaurant. You intend to attract college-age students who are health- and fitness-minded to your restaurant. You and your co-owners agree that each will invest equally in terms of time and money. However, in addition to contributions made by each of you, another $700,000 is essential for the restaurant to succeed.

(a) What type of organization is best suited for this business activity?

(b) Who will manage the restaurant during times that you and your co-owners are not present?

5. Three years following your graduation with a business degree, you and three classmates began operating a consulting business. Your firm specializes in offering support related to payroll-and account-management computer applications. So far, your firm has relied on the four of you as its only consultants. A potential major client requests that your firm make a proposal for a year-long project. This project would result in your firm hiring several additional consultants and support staff. Because of the length of time and financial commitment this project may take, you and your co-owners take time to address the following questions:

(a) How would your firm conduct business on such a large scale?

(b) How could you limit potential liability for and by various consultants?

6. The regulation of deceptive trade practices under Section 5 of the FTC Act, the disclosures required by the Truth-in-Lending Act, and the provisions of many other consumer protection laws are aimed at helping consumers. They do so by preventing business activities that might also violate what common law and statutory tort found in Chapter 10? Explain. (Chapter 10 was about Torts Affecting Business)

$ 22,

and 27 hours. Is that okay?