Mgmt597

Business Law

MGMT597

Week Five Homework Problems:

29.2. No, Samuelson is not liable to Mercedes Connolly. The court held that African Adventures was an independent contractor and that Samuelson acted as a broker in selling Connolly the tour package. The court held that travel agents have no duty to advise tourists that a walking tour was part of the itinerary, to advise tourists of proper footwear, to know the walking conditions of the destination of the tour, or to provide tourists with a safe and secure tour. Connolly v. Samuelson, 671 F.Supp. 1312 (D.Kan. 1987).

30.8. Yes, the Newspaper Agency Corporation (NAC) may be held liable to the Johnsons for the negligence of its employee agent, Donald Rogers. An agent is always liable for his own negligence caused when acting on behalf of his principal, and the principal is liable for the negligence of its agent if the agent was acting within the scope of his employment when the accident occurred. The court also held that the Johnsons could recover punitive damages from NAC. Punitive damages may be imposed for conduct that is willful and malicious or that manifests a knowing and reckless indifference and disregard toward the rights of others. It is the extreme, outrageous, and shocking behavior that justifies their imposition in drunk driving cases. The state Supreme Court rejected NAC’s motion for summary judgment on the issue of punitive damages. Johnson v. Rogers, 763 P.2d 771 (Utah 1988).

34.7. The partnership assets are subject to the claims of the unpaid suppliers. Under limited partnership law, a partnership is bound by a general partner’s wrongful acts, and the general partners are jointly and severally liable for everything chargeable to the partnership. The court held that Somers and Robertson had charged McGowan and his company, Advance, with the responsibility of developing Vermont...