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Oct 16, 2023

Case Study: Tommy Teenager (TT) is an enthusiastic, new employee at a local grocery store, Food Fetch (FF). His boss is Mary Manager (MM). One day, while accepting a shipment of food from Dandy Distributor (DD), Mary tells the DD driver about TT. She exclaims in front of TT what a great job he is doing, and that she would not be surprised if he ended up running the place someday.

One very busy Saturday, before a blizzard is forecast to hit the area, TT is the backroom working when DD pulls up with a delivery. DD is in a hurry to get unloaded and get on the road to beat the weather, and DD remembers what MM told him when he sees TT; DD asks TT to sign for the shipment. TT does not have any idea what he is doing. Still, he realizes how rushed MM is and how FF is running low on groceries on this busy, snowy Saturday. TT just wants to help, and signs for the shipment. TT puts the invoice on MM`s desk but forgets to tell her about it.

Three months later, DD calls MM to ask when she is going to pay for the shipment. MM knew nothing about TT signing for it and did not see the invoice on her messy desk.

Question: Explain why FF might be liable to pay. In all instances, be sure to distinguish liability for agents and principals. Additionally, does it matter whether MM knew TT did or did not have authority to act on behalf of FF?

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