Question 1:
Required: Please identify the type of authority of the agent in each of the following situations and what legal steps you can take.
You open a used car lot in Calgary. People are lined up around the block before the grand opening due to the shortage of available used cars. All of your salespeople are busy, so one of your service technicians helps potential customers. His name tag clearly says "mechanic". The excited and anxious customer makes a written offer on a used sports car and hands it to the mechanic. You find out about this after closing time. You want to accept the offer. (2 marks)
You own a clothing business. You send your purchasing agent to Las Vegas for a convention, with strict written instructions to observe only and not buy anything without your prior approval. Your purchasing agent is single and has not been out of his house since the first lockdown, so he goes wild in Las Vegas and signs a purchase contract without getting your approval. You learn about this online when he posts some questionable photos along with the caption: "I just closed an important purchase on behalf of my employer and also got married!" You are very angry and do not want to be a party to the contract.
Question 2:
Required: You are involved in the incorporation of Solomon Used Cars.
a) What do you need to add to the above name in order to incorporate? Why is this addition necessary?
b) You will be the initial director of the corporation, but not the majority shareholder. To whom do you owe a duty of care?
c) The majority shareholder is unhappy with the financial results and your decision making as sole director. What are two things the majority shareholder can do?
d) A customer asks about your other partners, but you operate as a sole proprietorship. What is one good reason to correct your client?