Asked by Siavash Namdari on May 29, 2024
Verified
Andy works for Sparkles,a jewelry store.While selling a zircon-studded ring to a customer,Andy falsely states that the zircon is a diamond.The customer,delighted to find a diamond ring at an affordable cost,buys the ring.If the customer files a lawsuit for damages,which of the following will most likely be the court's verdict?
A) Andy had the actual and apparent authority from Sparkles to make true statements,hence Sparkles is liable for Andy's misrepresentations.
B) Andy will be held liable for the misrepresentation and will have to pay damages to the customer and to Sparkles.
C) The customer will be held responsible since he was negligent in the purchase,but may receive a small percentage of damages from Sparkles.
D) Andy will be held liable for the misrepresentation to the customer,and will have to pay him damages.
Misrepresentations
False or misleading statements that may lead someone to enter into a contract or make a decision under false beliefs, potentially with legal consequences.
Actual And Apparent Authority
Actual authority refers to the power a principal intentionally gives to an agent to act on the principal's behalf, while apparent authority exists when the principal's actions lead a third party to believe that an agent has certain powers, even if such powers have not been explicitly granted.
Zircon
A mineral belonging to the group of nesosilicates, often used in jewelry as a diamond simulant and in various industrial applications.
- Explore the influence of express, implied, and apparent authority in identifying liability.
- Detail the process and underpinning rationale for identifying direct as opposed to vicarious liability.
Verified Answer
Learning Objectives
- Explore the influence of express, implied, and apparent authority in identifying liability.
- Detail the process and underpinning rationale for identifying direct as opposed to vicarious liability.
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