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Chapter 38 from Business Law and the Legal Environment was adapted by The Saylor Foundation under a Creative Commons...
Evaluate and apply the principles of agency law to these events and describe the legal effect of each of these events on the agency-principal relationship:
- In August, 2015, Ageless Antiques found an antique Steinway baby grand piano manufactured in 1890, but kept the piano to sell in the Ageless shop rather than selling it to Collector.
- In May, 2015, Ageless Antiques bought on behalf of Collector an antique baby grand piano manufactured in 1880 by Grant Company.
- Collector’s death in September 2015.
Below is answer to the above. Please respond accordingly to the answer below whether you agree/disagree etc... I am providing source material please cite from the source material provided.
1. Ageless Antiques is supposed to buy the Steinway piano for the Collector, but instead sold it at their store. I think that Ageless Antiques violated the contract by breaching the duty to avoid self-dealing. Self-dealing is when the agent and the principle both have an interest in a transaction(Advanced Business Law and the Legal Environment, 2014). The Collector and the agent both had an interest in the piano. The Collector wants the piano for his collection, while the agent can make a greater profit by selling it at his store(I'm assuming). Ageless Antiques should've bought the piano for the Collector. The agent has made himself/herself liable to the Collector.
2. Ageless Antiques is a special agent, they only have the ability to act on the Collector's behalf for purchasing antique baby grand pianos manufactured by Steinway between 1880-1900. Ageless Antiques bought a Grant baby grand piano for the Collector. Ageless Antiques had a duty of skill and care and did not have the authority to buy a Grant baby grand piano. The agent only had the authority to buy a Steinway baby grand piano. The agent specializes in antiques and should be able to tell the difference between a Steinway and a Grant. Ageless Antiques is liable to the Collector if they bought the piano thinking it was a Steinway. If the agent bought the piano knowing that it was not a Steinway, then they are liable to the seller of the Grant piano.
3. When the Collector dies, by operation of the law principle the agency is terminated(Advanced Business Law and the Legal Environment, 2014). That means that Ageless Antiques is no longer a special agent and no longer has the authority to buy a Steinway piano for the Collector.
References
Advanced Business Law and the Legal Environment (2014). Washington, D.C.: The Saylor Foundation
- Attachment 1
- Attachment 2
