Fab Flowers
Critical legal Thinking Project No. 2
I. Describe the legal relationship between Fab Flowers and Ben and explain any specific legal duties and liabilities of Fab Flowers and Ben in this relationship.
Fab Flowers and Ben formed an agency by agreement, whether oral or written, when Fab Flowers agreed with Ben to represent the partnership in purchasing wholesale flowers in Ecuador. On the two parties’ relationship, Fab Flower is the principal because they are employing Ben (the agent) to act on their behalf to purchase flowers for them in Ecuador to be resale.
Fab Flowers (Principal) duties to Ben * Compensation- Fab Flowers has a duty to pay Ben in a timely manner, either after the completion of the job or a specified agreed time. * Reimbursement and Indemnification- Any expenses that Ben incurred on behalf of Fab flowers in purchasing are reimbursable. In addition, the book also stated that subject to terms they agreed, Fab flowers have the duty to indemnify Ben for liabilities acquired because of authorized and lawful act transactions. * Cooperation- Fab Flowers has the duty to cooperate with Ben to assist him to perform his duties. * Fab Flowers maybe liable to any harm on property or person if they authorize Ben (agent) to commit a tort.
II. One day while delivering flowers in the partnership delivery truck, Fran negligently ran a stop sign, striking a car driven by Peggy, causing damage to the car and injury to Peggy. A. Explain
(1) the personal liability of Fran, Joe, and Mike to Peggy;
By negligently running a stop sign and striking Peggy’s car, which caused damages and injury, Fran, Joe and Mike can be sued by Peggy either all together, or separately. If Peggy decides to sue all three of them, they will be held joint and several liable. Even though, Joe and Mike did not participate or cause any direct damages to Peggy, she can go after their separates assets but only after exhausting the partnership’s asset. However, after
I. Describe the legal relationship between Fab Flowers and Ben and explain any specific legal duties and liabilities of Fab Flowers and Ben in this relationship.
Fab Flowers and Ben formed an agency by agreement, whether oral or written, when Fab Flowers agreed with Ben to represent the partnership in purchasing wholesale flowers in Ecuador. On the two parties’ relationship, Fab Flower is the principal because they are employing Ben (the agent) to act on their behalf to purchase flowers for them in Ecuador to be resale.
Fab Flowers (Principal) duties to Ben * Compensation- Fab Flowers has a duty to pay Ben in a timely manner, either after the completion of the job or a specified agreed time. * Reimbursement and Indemnification- Any expenses that Ben incurred on behalf of Fab flowers in purchasing are reimbursable. In addition, the book also stated that subject to terms they agreed, Fab flowers have the duty to indemnify Ben for liabilities acquired because of authorized and lawful act transactions. * Cooperation- Fab Flowers has the duty to cooperate with Ben to assist him to perform his duties. * Fab Flowers maybe liable to any harm on property or person if they authorize Ben (agent) to commit a tort.
II. One day while delivering flowers in the partnership delivery truck, Fran negligently ran a stop sign, striking a car driven by Peggy, causing damage to the car and injury to Peggy. A. Explain
(1) the personal liability of Fran, Joe, and Mike to Peggy;
By negligently running a stop sign and striking Peggy’s car, which caused damages and injury, Fran, Joe and Mike can be sued by Peggy either all together, or separately. If Peggy decides to sue all three of them, they will be held joint and several liable. Even though, Joe and Mike did not participate or cause any direct damages to Peggy, she can go after their separates assets but only after exhausting the partnership’s asset. However, after
References: Business Law: Text and Cases. Kenneth Clarkson, Roger Miller, and Frank Cross.12th ed.Mason, OH: South-Western, 2012.