Explain when a principal is or is not contractually liable for agreements made by an agent.

When might a principal be liable for torts committed by an agent?

What terminates an agency relationship?

Jerry Clark is the sole proprietor of Affordable Digital Hearing, which does business by repairing hearing aids. In June $2006,$ Clark received a call from Kevin Wilson, a representative of Business$-2-$Business Solutions $($B$2$B$),$ who was offering to sell facsimile advertising services. Facsimile advertisements are ads sent by fax. Clark informed Wilson that he was not interested, but changed his mind after receiving a second phone call from Wilson. Over the course of the negotiations, Clark authorized B$2$B to send about $100$ ads to local businesses within $20$ miles of Terre Haute, Indiana, where Wilson's business was located. However, B$2$B sent $6,000$ fax ads not only within the $20-$mile radius of Terre Haute, but also to other areas, including Cleveland, Ohio, Northern Indiana, and the Chicagoland area. As a result, Clark was the target of a certified class action represented by Bridgeview Health Care Center LTD$.,$ an Illinoisbased corporation, for violations of the Telephone Consumer Protections Act. In the class action

proceedings, the court ruled that Clark was liable only for the facsimile advertisements sent within a $20-$mile radius of Terre Haute. However, the court did not find Clark liable for facsimile advertisements sent outside the area as it was not authorized by Clark, citing the FCC$\text{'}$s position that the TCPA incorporates traditional rules of vicarious liability. Bridgeview immediately filed a motion to alter judgment, contending that the court erred in interpreting the TCPA's junk$-$fax provisions as incorporating principles of vicarious liability instead of direct liability. Clark also filed a motion to reconsider, contending that because Bridgeview was outside of the $20-$mile radius of Terre Haute, the court should decertify the class and vacate any money judgments to the plaintiffs. What is the difference between vicarious liability and direct liability? How would either kind of liability impact the court if it were applied? How did the court rule on the motion to alter judgment? $[$Bridgeview Health Care Center Ltd$.,$ an Illinois corporation, individually and as the representative of a class of similarly$-$situated persons $v.$ Jerry Clark, $\frac{d}{b}\frac{?}{a}$ Affordable Digital Hearing, $2015$ U$.$S$.$ Dist. $($LEXIS $45710)]$

Mala is a citizen of the US Virgin Islands, and in early $2005,$ he decided to take his power boat out for a cruise. He was running low on gas and decided