Alice M., has operated a furniture store in Victoria, BC, for a number of years. The...

  

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Alice M., has operated a furniture store in Victoria, BC, for a number of years. The store has been successful to the point where it has outgrown its current leased space. Alice recently discovered a newer strip mall for sale in what she considers to be an ideal location for her store. The strip mall was developed on land that was previously occupied by a gas station and grocery store. A business colleague, Phil B. is interested in joining Alice in the strip-mall venture. They will incorporate ABC Ltd., to purchase and operate the mall, Half of the space is currently occupied by a number of businesses leasing space from the current owner. The plan is for Alice's store to occupy most of the vacant space and to find new tenants for the balance of the vacant space. The list price for the mall is $2 million. Alice and Phil can raise $800,000 and plan to borrow the remainder. Before she and Phil proceed further. Alice wants to know how she can escape from her lease with her current landlord. She also wants to understand the implications of buying the mall, obtaining the necessary financing and dealing with current and future tenants. Question: What does Alice need to know about the rights and obligations of her current lease and leases for the mall? Joe is shopping for a new TV at Big Screen City Ltd. The company's return policy applies to regularly priced products only. The salesperson, who is new to the job. mistakenly tells Joe he may return any TV within seven days if he returns the box and packaging materials as well. Joe relies on this representation when he chooses a very large plasma television on sale for 10 percent off the regular price. When Joe returns home, he learns his wife just lost her job. He immediately returns to Big Screen City with the TV and the packaging materials. The manager tells him the store policy does not allow for returns of sale merchandise. Question: In this scenarion identify who is the principal, who is the agent and who is the third party. Is this an example of actual or apparent authority? explain your answer. Alice M., has operated a furniture store in Victoria, BC, for a number of years. The store has been successful to the point where it has outgrown its current leased space. Alice recently discovered a newer strip mall for sale in what she considers to be an ideal location for her store. The strip mall was developed on land that was previously occupied by a gas station and grocery store. A business colleague, Phil B. is interested in joining Alice in the strip-mall venture. They will incorporate ABC Ltd., to purchase and operate the mall, Half of the space is currently occupied by a number of businesses leasing space from the current owner. The plan is for Alice's store to occupy most of the vacant space and to find new tenants for the balance of the vacant space. The list price for the mall is $2 million. Alice and Phil can raise $800,000 and plan to borrow the remainder. Before she and Phil proceed further. Alice wants to know how she can escape from her lease with her current landlord. She also wants to understand the implications of buying the mall, obtaining the necessary financing and dealing with current and future tenants. Question: What does Alice need to know about the rights and obligations of her current lease and leases for the mall? Joe is shopping for a new TV at Big Screen City Ltd. The company's return policy applies to regularly priced products only. The salesperson, who is new to the job. mistakenly tells Joe he may return any TV within seven days if he returns the box and packaging materials as well. Joe relies on this representation when he chooses a very large plasma television on sale for 10 percent off the regular price. When Joe returns home, he learns his wife just lost her job. He immediately returns to Big Screen City with the TV and the packaging materials. The manager tells him the store policy does not allow for returns of sale merchandise. Question: In this scenarion identify who is the principal, who is the agent and who is the third party. Is this an example of actual or apparent authority? explain your answer.

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In the first scenario involving Alice and Phil purchasing a strip mall Alice wants to understand the rights and obligations of her current lease and the leases for the mall Here are some key considera... View the full answer