Agency and Employment Law?

Question by Mo: Agency and Employment Law?
Bob, a sales manager for BuyMore, stopped by The Grill to meet a client for dinner. Bob always enjoyed having an expensive bottle of wine with dinner as a way of impressing his clients. This particular client, Mary, who owns an antique import business, is well traveled and really appreciated the fine French wine that Bob ordered. Because the service was so slow, the wine was gone before they received their entrees. Not wanting to appear cheap, Bob ordered another bottle of wine. During dinner, Bob offered to sell Mary a hundred shipping crates for $ 500 each. Mary readily agreed, knowing that this was an incredible deal. They both signed the contract Bob had prepared in advance. On his way home, Bob stopped to see his girlfriend. When he was telling her about the evening, Bob suddenly realized that $ 500 would barely cover the cost of the crates. Distraught at the thought of no commission, Bob immediately left for home. On the way, he ran a stop sign and hit an oncoming car, seriously injuring the driver.

What kind of liability does BuyMore have for Bob’s actions?
Was a valid contract formed, binding BuyMore?
What kind of liability does Bob face personally?

Best answer:

Answer by denissnowy
Did Bob have the accident whilst carrying out his employment or travelling on company business? No, therefore the company is not at fault and not Liable.

Doubtful if they would have been liable anyway as he had been drinking.

The contract was valid assuming Bob was authorised to make it in the first place as an agent of the company – which he would have been as a sales manager. The wine was not to blame as he had preprepared the contract.

Bob is personally liable for the accident – running a stop sign and DUI. Also he is clearly incompetent and his employers will hold him responsible for a poor deal.

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agency, employment