ABC Store (ABC) was a chain store selling computers and accessories in Hong Kong. Due to the
Question:
ABC Store (ABC) was a chain store selling computers and accessories in Hong Kong. Due to the need for a major restructuring, its board of directors had made several moves including downsizing the staff force and closing down some selected stores recently. Jacky had worked in ABC as a purchasing manager for five years and was responsible for purchasing gaming computers and accessories for ABC. Jacky regularly purchased from a number of suppliers for gaming computers and accessories including a major supplier Fancy Electronics Ltd. (FEL). Unfortunately, ABC had laid off several personnel including Jacky in January 2022 due to the restructuring. However, in March 2022, Jacky still made another purchase of some gaming accessories from FEL in the name of ABC. Shortly after, ABC received an invoice from FEL demanding payment in respect of Jacky’s purchase in March 2022.
Required:
(a) Explain whether ABC would be legally bound by the purchase made by Jacky with FEL in March 2022 under the agency law. You are required to cite a relevant case to support your answer.
(b) Would your answer in (a) be different if FEL already learnt that Jacky no longer worked in ABC when he made the purchase in March 2022? Explain.
Business Law Text And Cases
ISBN: 9780357129630
15th Edition
Authors: Kenneth W. Clarkson, Roger LeRoy Miller