| University | Open Polytechnic (OP) |
| Subject | LES501: Introduction to the Legal System |
Sarah operates a business in which she provides website design services to different organizations throughout the South Island.
Sarah hires Chen to work for her. Chen’s job includes visiting businesses and offering Sarah’s website design services for sale. Sarah discovers that Chen has been selling the website design services at inflated prices and pocketing the extra money. Chen has also been promoting the website design services of another organization rather than selling Sarah’s services.
- Explain any two implied duties of an agent that Chen might have breached.
- Sarah is thinking of upgrading the office furniture at her workplace. Craig, a friend of Sarah’s, notices that a business in town, Office Plus, is selling office furniture that would be perfect for Sarah. Without consulting Sarah, Craig decides to purchase the office furniture, telling the manager of Office Plus that he is buying it on behalf of Sarah. Later that day, Craig tells Sarah that she needs to ‘take over’ the purchase agreement that he entered into with Office Plus since he was her ‘agent’ at the time.
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