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business law

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If Terry mistakes Mr Hall for a sales clerk and He helps her pick out a suit and she gives him money. Then he pockets the money and leaves is the store responsible? does the store have to honor the sale?

  • business law -

    No, because the the store did not create a situation that led her to assume that Hall was a sales clerk.

    Check out page 416 in your Business Law book/

  • business law -

    I just got my test results back and the answer I posted above is incorrect. Here is the right answer:

    Yes. In this situation Hall had the apparent authority to sell the suit. In effect, by opening the store, the store is communicating to costumers that salespersons will be present to help them. If the store fails to exercise due care in policing the sales area, then the store would be estopped from denying the imposter's authority. Of course, Hall has committed fraud and theft and would be open to criminal persecution for his actions. Hall is also liable in tort to the store for conversion. See page 405 of the Business Law book.

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