Mary owns a computer shop. She employs several salespeople plus a couple of people to assemble and repair computers. Her senior salesperson is Brian, who has been thinking about leaving and working for his brother in a higher paid job. To encourage Brian to stay Mary gives Brian a pay increase and the title of 'shop manager' although his job remains essentially selling to customers. He is given no actual authority to make business decisions.

 

Mary introduces Brian to dealers and customers as 'shop manager' and gives him a badge which so identifies him. Fred, a computer components wholesaler, visits the shop one day when Mary was out visiting a customer. Fred persuades Brian to order a large quantity of components for the shop and Brian signs the order as 'shop manager'. 

 

When the components arrive, Mary refuses to accept or pay for them. 

 

Required

 

1. Advise Fred of his chances of being paid, and by whom.
2. Discuss with reference to relevant cases and legal principles. Do not refer to legislation.

Answer rating: 100% (QA)

Freds chances of being paid for the components ordered by Brian as shop manager will likely depend o... View the full answer