Legal Business Environment

Jennifer Dudula

Chapter 37- Summary of Case: Record v. Wagner (6)

In this case, Wagner was hired to bale hay by Berry. Berry was Record’s agent, and Wagner was paid by Record for the first year. The next year, Record terminated the agency, but Berry was still in possession of the farm and nothing had seemed to have changed. Wagner continued to bale the hay the next year and billed Record for the work that had been performed. Record had refused to pay Wagner because Berry was not technically his agent ever since the agency had been terminated. Wagner then sued Record for not paying the bill. According to the text book, when an agency is terminated notice must be given to the third persons. Based on the evidence, since notice was not given to Wagner (the third person), the agent still would have the power to make a contract that will bind the principal and third person. This would mean that Record would be required to pay Wagner for his work of bailing the hay.

Chapter 38- Summary of Case: Moritz v. Pines Hotel, Inc. (9)

In this case, a hotel guest, Moritz, was injured by an employee of the Pines Hotel. The employee had accidentally dropped a vacuum cleaner on the knee of Moritz. The guest complained, and the employee retaliated by punching Moritz and knocking her unconscious. She then sued the hotel for damages claiming that the Pines Hotel was liable for her injury. It seems as though the Pines Hotel would be liable for the crime committed by one of their employees. Based on the hotel employee’s malevolence toward the hotel guest, the hotel should not be liable for the damages demanded by Moritz. According to the text book, the employer of the employee should only be held liable for the employee’s crime if there was a violation in liquor sales laws, pure food laws, laws regulating prices, and environmental protection laws.