Brandt Crossing Investments, Inc., was a family-owned property investment organization, investing in undeveloped properties when prices were low and then selling them when prices went up. Among its holdings, Brandt Crossing owned fifty acres of undeveloped land next to another fifty acres of undeveloped land owned by Khloe Hadid. Carter Rios, property manager for Brandt Crossing, approached Hadid and offered to purchase her fifty acres “for Brandt.” Hadid sold the property for $50,000. Within one year, Brandt Crossing sold its 100 acres, including the property bought from Hadid, to a developer for $1,000,000. Richard Brandt, a 5% owner of Brandt Crossing Investments and an old high school acquaintance of Hadid, saw her at the mall and told her of the recent sale. Furious that she had lost out on the income and convinced that Rios had misled her, Hadid sued Richard Brandt for the acts of his agent, Rios. Hadid argued that the facts were sufficient to create an agency by estoppel to impose liability on Richard Brandt. Identifying the Facts and Issues Hadid’s theory for holding Richard Brandt personally liable for Rios’s actions is that Richard Brandt created a reasonable belief that Rios was Brandt’s agent in doing the activity, thus creating agency by a) agreement b) ratification c) estoppel . Hadid believed that Rios was Richard Brandt’s agent because Brandt a) showed Hadid the agency agreement b) told her about the sale to the mall c) had paid Rios . The second basis for Hadid’s belief that Rios was Richard Brandt’s agent was that a)Rios was payed by a company that Richard Brandt partially owned B) Rios told Hadid he was going to work for Brandt C) Rios had an agency agreement with Richard Brandt . In purchasing the land, Rios was actually acting as an agent for A) Brandt Crossing Investment Inc. B) Richard Brandt C) Khloe Hadid

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Brandt Crossing Investments, Inc., was a family-owned property investment organization, investing in undeveloped properties when prices were low and then selling them when prices went up. Among its holdings, Brandt Crossing owned fifty acres of undeveloped land next to another fifty acres of undeveloped land owned by Khloe Hadid.

Carter Rios, property manager for Brandt Crossing, approached Hadid and offered to purchase her fifty acres “for Brandt.” Hadid sold the property for $50,000. Within one year, Brandt Crossing sold its 100 acres, including the property bought from Hadid, to a developer for $1,000,000. Richard Brandt, a 5% owner of Brandt Crossing Investments and an old high school acquaintance of Hadid, saw her at the mall and told her of the recent sale. Furious that she had lost out on the income and convinced that Rios had misled her, Hadid sued Richard Brandt for the acts of his agent, Rios. Hadid argued that the facts were sufficient to create an agency by estoppel to impose liability on Richard Brandt.

Identifying the Facts and Issues

Hadid’s theory for holding Richard Brandt personally liable for Rios’s actions is that Richard Brandt created a reasonable belief that Rios was Brandt’s agent in doing the activity, thus creating agency by

a) agreement b) ratification c) estoppel

. Hadid believed that Rios was Richard Brandt’s agent because Brandt

a) showed Hadid the agency agreement b) told her about the sale to the mall c) had paid Rios

. The second basis for Hadid’s belief that Rios was Richard Brandt’s agent was that

a)Rios was payed by a company that Richard Brandt partially owned B) Rios told Hadid he was going to work for Brandt C) Rios had an agency agreement with Richard Brandt

. In purchasing the land, Rios was actually acting as an agent for

A) Brandt Crossing Investment Inc. B) Richard Brandt C) Khloe Hadid

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