Question

Robin and Jimmy owned the RJ partnership. Robin, without consulting with Jimmy, appointed her cousin Becka as RJ’s exclusive sales agent for the Kansas City, Missouri area. Jimmy, without consulting with Robin, hired his cousin Karlie as RJ’s exclusive sales agent for the Kansas City, Missouri area. At first, there was considerable conflict and tension between the two agents, but, in 2019, they began to overcharge customers, collecting a 25% down payment from customers, giving half to RJ and splitting the balance between themselves.

In early 2020, both agents were terminated by RJ. In January, all of Becka’s and Karlie’s customers were notified of the termination. In addition, RJ identified all potential customers in Kansas City, Missouri and they were all notified of the termination of the agents.

To avoid criminal prosecution, Becka escaped to Greenland for the weather (it does have “green” in its name). Karlie decided to attempt two more big scores. She contacted two of RJ’s customers and representing herself as RJ’s agent sold $100,000 of merchandise to Rebecca and $50,000 of merchandise to Mary Beth. Rebecca was a former customer whom Karlie had sold merchandise to when she had actual authority from RJ. Mary Beth was from Kansas City, Kansas and although she was a prior customer of RJ she had had no prior dealings with Karlie. Karlie collected a 25% down payment and joined Becka in Greenland.

Answer the following questions, providing a legal rationale for each answer.

1. What cause of action would Becka and Karlie have against RJ?

2. What argument would Rebecca made that RJ is liable under the contract? What      reply would RJ make?

3. What argument would Mary Beth made that RJ is liable under the contract? What      reply would RJ make?

4. Between Rebecca and Mary Beth who has the strongest argument?

Answer 1

a.Becka and Karlie can have below Arguments against the RJ

Ø Becka and Karolie gave the overcharged the amount from customer of RJ partnership. Overcharged amount share has been given to RJ Partnership .At that time RJ partnership didn’t raise any concern.Now they are terminated both of us with giving proper justification.

Ø Robin Appointed Becka and Jimmy Hired karlie without consulting each other ,this was the contract breach .Every new recruitment within the contract should be mutually agreed. Here Robin and Jimmy

Ø Already Jimmy and Robin has the conflict, because of this conflict they terminated.Pls give a clear reason for our termination

b.Rebecca will claim that RJ agent Karlie sold the RJ products to me .since he owns the RJ product I thought karlie is an RJ agent.

RJ can highlight the information to Rebecca about the termination of contract of both Becka and karlie .We also notitifed to all of our customers ,If you buy the products without referring this information,Then RJ is not responsible for this.

c.mary berth also will have same arguments like Rebecca .However RJ can give the same answer like" termination of contract of Karlie already announced to all of customers ,then why your purchasing the RJ product "from Karlie.Now karlie is not an RJ sale staff.Also Karlie never sold anything to me before then how your trusting him without referring the termination of karlie employment.

d. mary berth will hav strong argument ,why Because mary berth never done a transaction with karlie.So there is less chance of Mary to see karlie .When karli sold the product mary has seen the RJ product name and brought.