eeded repair. The work done on the car was performed by Ivan Fix a certified auto mechanic at Mr. Kar’s shop. Mr. Kar sets the prices on all repair work which is done at his shop. Additionally, Mr. Kar employs staff for sending out bills and collecting payments from clients. Mr. Fix collects a salary from Mr. Kar but generally does the repair work unsupervised by Mr. Kar. Additionally, Mr. Fix attends annual continuing training programs where he learns all of the newest methods and tools for repairing new cars which he then performs on the cars that he works on in Mr. Kar’s shop. Mr. Fix also schedules car repair appointments himself with returning clients at Mr. Kar’s facility. Mr. Kar has a policy within the shop that only he is allowed to set and communicate the costs for repair work to customers.  During the repairs of Ms. Brucken’s brakes, Mr. Fix accidentall

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Maria Brucken visited her auto mechanic shop owned by M.Y. Kar to have repair work done on her 2021 Toyota Odyssey, specifically, her brakes needed repair. The work done on the car was performed by Ivan Fix a certified auto mechanic at Mr. Kar’s shop. Mr. Kar sets the prices on all repair work which is done at his shop. Additionally, Mr. Kar employs staff for sending out bills and collecting payments from clients. Mr. Fix collects a salary from Mr. Kar but generally does the repair work unsupervised by Mr. Kar. Additionally, Mr. Fix attends annual continuing training programs where he learns all of the newest methods and tools for repairing new cars which he then performs on the cars that he works on in Mr. Kar’s shop. Mr. Fix also schedules car repair appointments himself with returning clients at Mr. Kar’s facility. Mr. Kar has a policy within the shop that only he is allowed to set and communicate the costs for repair work to customers. 

During the repairs of Ms. Brucken’s brakes, Mr. Fix accidentally damaged the radiator on the Odyssey. He told Maria that because of the damage that he caused to the radiator, Mr. Fix would both repair the damage he had caused to the radiator and Maria would not have to pay for the repairs on her car’s brakes (usually worth $1,000). 

Maria then received a bill for $1,000 from Mr. Kar for the work done on her brakes. Would Maria need to pay that bill? Explain your answer giving specific reference to agency law and all of the rights and duties therein. Be sure to define who the principal is and who the agent is, what type of agency (if any) exists here and why or why doesn’t Maria need to pay the bill according to specific principles of law that you have learned in this class.

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