Case Study

Jack is 19 years old, and he wants to get a job to pay his college course fees. Sam manufactures flowerpots and asks Jack whether he is interested in selling them as his agent. Jack signs a written agreement with Sam, and the agreement states explicitly that Jack must obtain Sam's permission to make any contract valued at over $1,000. Upon signing the contract, Sam gives Jack an ID which states Fully Authorised Agent of Sam Flowerpots. Ricardo, an enthusiastic gardener, contacts Jack to buy flowerpots. Seeing how young Jack is, Ricardo asks whether he can actually work on behalf of Sam and Jack sends a photo of his ID to Ricardo. Ricardo orders 50 flowerpots worth $1500 and pays money upfront. Jack promises to arrange delivery and calls Shian, his regular delivery service provider, to get Ricardo's flowerpots by next week. Shian asks for a $100 deposit, and Jack sends the money to Shians bank account. Ricardo is pleased with Jack's services and pays a commission of $250 to thank Jack and Jack decided to keep it for himself.

Advise Jack as to the following questions.

(b) Does Jack have the authority to pay $100 deposit to arrange delivery for the flowerpots?

Hint: Using IRAC (Issue, rules, application and conclusion) to answer this case study.