Question

THERE IS NO REFERENCE FOR THIS!! JUST STATE IN EACH SCENERIO (a-e) WHETHER HE HAS AUTHORITY OR NOT AND EXPLAIN WHY!

1. Types of Agent’s authority. For each scenario, evaluate whether Johnny has authority to act as Edgar’s agent, and why or why not.

Example: Edgar gives Johnny a valid power of attorney to sign a real estate closing deed for him. Johnny signs the deed. Answer: Johnny has express authority because the written power of attorney gives Johnny the authority to sign the deed.

1. Although it is not part of Johnny’s duties, and there is no written agency agreement in place, Johnny has been collecting Edgar’s rent and depositing it in Edgar’s account for the last 15 months. One of the tenants asks Johnny if it would be OK to pay rent five days late next month, and Johnny agrees.
2. Johnny drives a delivery truck for Edgar as part of his employment. Edgar has an account at the gas station so employees can put gas in the company vehicle. Though Johnny does not have any written job duties, and Edgar has never expressly told Johnny to use his account to fill up the van, Johnny charges gas to Edgar’s account each time he fills it up.
3. Edgar gives Johnny a valid general power of attorney to conduct any of Edgar’s business while Edgar is out of the country. While Edgar is in Costa Rica, Johnny negotiates a fair sale price for Edgar’s office building and signs a contract on Edgar’s behalf for its sale. Did Johnny have authority? Why or why not? If so, what kind?
4. Edgar employs Johnny as the manager of his convenience store. Johnny does not have any written employment contract or job duties, and Johnny and Edgar have never verbally discussed whether Johnny has the authority to make orders from suppliers. Nevertheless, Johnny regularly calls suppliers and orders inventory, and has done so for the past six months. Did Johnny have authority? Why or why not? If so, what kind?
5. Kenny boards his racehorse at Johnny’s stable. Johnny is not Kenny’s employee, and they have no written or verbal agreements about what Kenny can do for the horse. One day when Kenny is visiting, the horseshoe man is working on the hooves of several other horses. The horseshoe man asks Johnny and Kenny if he should give Kenny’s horse new shoes. Kenny says nothing and looks at Johnny, who nods his head. Did Johnny have authority? Why or why not? If so, what kind?

Answer 1

Answer a): Johnny has no authority to agree to pay rent five days late next month, although he is collecting rent on Edgar's behalf from tenant and depositing it in Edgar’s account for the last 15 months. But he is working as courier person is this context. The right to take decision is always the authority of Edger. Instead of agreeing upon tenant proposal, Johnny should take consent of Edger.

Answer b): Yes Johnny has authority to charges gas to Edgar’s account each time he fills it up. Because Johnny drives a delivery truck for Edgar as part of his employment and Edger made a policy in his company that employees can put gas in the company vehicle from his account at gas station. This policy smoothen his reimbursement process of employees gas bills. As a common policy exists in company, in capacity of company employee Johnny did not need any separate written permission.

Answer c): Yes Johnny has authority to negotiates a fair sale price for Edgar’s office building and signs a contract on Edgar’s behalf for its sale. Before providing Johnny a valid general power of attorney to conduct any of Edgar’s business while he is out of the country, Edger ensured himself upon fidelity of Johnny. And Edger is legally bind to agree upon contract signed by Johnny. For general best practices Johnny must wait for Edger to return home if signing of contract can be delayed, or Johnny may take consent from Edger by email or telephonically before signing it. But if he signed contract somehow, legally he has authority to do so.

Answer d): No Johnny do not have authority to calls suppliers and orders inventory. As for as legality concerned professional relations are always bound by contract. Employee of any firm are provided with roles and responsibility, rights and duties, financial and administrative power limits, etc. and all are written and documented. Although Johnny is enjoying power to call suppliers and orders inventory, he is not legally authorized to do so.

Answer e): Yes Johnny have authority to nods for giving Kenny’s horse new shoes. Because after question asked with Kenny and Johnny by horseshoe man, Kenny's getting mute and looking at Johnny gives decision making power to Johnny on this matter. It is like giving power of attorny by Kenny to Johnny for making decision. This matter cannot be found any legal book, but as human are social animal and this type of situation like looking over someone and getting mute says that Kenny is respecting Johnny decision and will agree upon whatever Johnny would decide.