1. Were Paliath’s representations to Auer within the scope of her employment? Will the court hold the principal (Home Town Realty) liable for the misrepresentations of the agent (Paliath)? What is the ethical basis for imposing vicarious liability on a principal for an agent’s tort?
2. Your child's orthodontist offers you two alternative payment plans. The first plan requires a $3,500 immediate up-front payment. The second plan requires you to make monthly payments of $137.41, payable at the end of each month for 3 years. What nominal annual interest rate is built into the monthly payment plan?