Sally works as a manager in the gardening section of her local Bunnings Store. Recently, Sally was approached by a customer asking questions about the store's range of buil-in kitchens. Allhough she knew nothing about the products, Sally recommended the deluxe kitchen package which came with free installation. Aftter completing the sale, Sally handed the customer her Bunnings business card (which identified her as a manager), explained that the customer should get his new kitchen professionally installed and to forward her the 3 party's invoice-which Bunnings would pay. A few weeks later, the customer is shocked to learn that Bunnings is refusing to pay his carpenter's $10,000 invoice and that Sally failed to mention that the offer was capped at $500. Required: a) With reference to Pacific Carriers v Paribas, what is the test for deciding if an agent had apparent authority? b) Analyse whether Sally had apparent authority to bind Bunnings Pty Ltd to this $10,000 contract. c) How would your answer be different if the customer knew that Sally didn't have permission to authorise this transaction

Sally works as a manager in the gardening section of her local Bunnings Store. Recently, Sally was approached by a customer asking questions about the store's range of buil-in kitchens. Allhough she knew nothing about the products, Sally recommended the deluxe kitchen package which came with free installation. Aftter completing the sale, Sally handed the customer her Bunnings business card (which identified her as a manager), explained that the customer should get his new kitchen professionally installed and to forward her the 3 party's invoice-which Bunnings would pay. A few weeks later, the customer is shocked to learn that Bunnings is refusing to pay his carpenter's $10,000 invoice and that Sally failed to mention that the offer was capped at $500. Required: a) With reference to Pacific Carriers v Paribas, what is the test for deciding if an agent had apparent authority? b) Analyse whether Sally had apparent authority to bind Bunnings Pty Ltd to this $10,000 contract. c) How would your answer be different if the customer knew that Sally didn't have permission to authorise this transaction

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

As a recent hire of B-Well, your job is to evaluate whether the company should open a traditional grocery store in Astoria or start online shopping option instead. Before deciding which project to undertake, the Board of Directors has already agreed that they will hire a consultant to verify their decision. The consultant is charging $16, 580 total. They have also agreed that they will hire an NYC marketing agency to promote B-Well's reputation. They are not sure what the charge will be for the marketing services. For now, they just have to decide which project they will undertake. Brick & Mortar Store. B-Well Health Mart has to rent and renovate a space in Astoria. The estimates for the up-front renovation costs range from $2,250,000 to $2,650,000 to be depreciated over the life of the project using straight-line with a zero salvage value. There is a foreclosed warehouse in the area that their lenders are offering at a large discount since the lenders are losing money on it. The…
Sue is a customer account representative for ABC Company. She recently acquired several new accounts when a previous representative, Dan, took an early retirement. Sue reviewed each of Dan’s accounts to help familiarize herself with his clients and understand how she can better serve each one’s individual needs. As she was reviewing the client list, she found a major customer she had never heard of before. Surprised that she had not yet done business with the company, she called it to introduce herself as the new representative. When Sue placed the call, she found that the reported number had been disconnected. Thinking that the customer may have done business with ABC in the past and have moved on, she reviewed the account transactions and found that the most recent transaction had taken place the week prior. During her review, she also noticed the latest transaction was for an unusually large amount for ABC. As Sue pursued her curiosity, she went to other employees to find out more…
Busytown Corporation, which manufactures shoes, hired a recent college graduate to work in its accounting department. On the first day of work, the accountant was assigned to total a batch of invoices with the use of an adding machine. Before long, the accountant, who had never before seen such a machine, managed to break the machine. Busytown Corporation gave the machine plus $340 to Dick Tracy Business Machine Company (dealer) in exchange for a new machine. Assume the following information about the machines. Busytown Corp. (Old Machine) Dick Tracy Co. (New Machine) Machine cost 000 $290000 000 $270000 Accumulated depreciation 000 140000 000 –0–000 Fair value 000 85000 000 425000 Instructions For each company, prepare the necessary journal entry to record the exchange. (The exchange has commercial su
Danielle Hastings was recently hired as a cost analyst by CareNet Medical Supplies Inc. One of Danielle's first assignments was to perform a net present value analysis for a new warehouse. Danielle performed the analysis and calculated a present value index of 0.75. The plant manager, Jerrod Moore, is intent on purchasing the warehouse because he believes that more storage space is needed. Jerrod asks Danielle to come to his office, where the following conversation takes place: Jerrod: Danielle, you're new here, aren't you? Danielle: Yes, I am. Jerrod: Well, Danielle, I'm not at all pleased with the capital investment analysis that you performed on this new warehouse. I need that warehouse for my production. If I don't get it, where am I going to place our output? Danielle: Well, we need to get product into our customers' hands. Jerrod: I agree, and we need a warehouse to do that. Danielle: My analysis does not support constructing a new warehouse. The numbers…
The following is an excerpt from a conversation between Paula Marlo, the warehouse manager for Musick Foods Wholesale Co., and its accountant, Mike Hayes. Musick Foods operates a large regional warehouse that supplies produce and other grocery products to grocery stores in smaller communities.Paula: Mike, can you explain what’s going on here with these monthly statements?Mike: Sure, Paula. How can I help you?Paula: I don’t understand this last-in, first-out inventory procedure. It just doesn’t make sense.Mike: Well, what it means is that we assume that the last goods we receive are the first ones sold. So the inventory consists of the items we purchased first.Paula: Yes, but that’s my problem. It doesn’t work that way! We always distribute the oldest produce first. Some of that produce is perishable! We can’t keep any of it very long or it’ll spoil.Mike: Paula, you don’t understand. We only assume that the products we distribute are the last ones received. We don’t actually have to…
Jennifer Caratini has recently accepted the job as the foodservice director for Technomar Industries, a corporation with 1,000 employees. As their foodservice director, Jennifer's role is to operate a company cafeteria, serving 800 to 900 meals per day, as well as an executive dining room, serving 100 to 200 meals per day. All of the meals are provided "free of charge" to the employees of Technomar. One of Jennifer's first job is to prepare a budget for next year's operations.Question:In addition to her know-how as a foodservice director, what skills will Jennifer likely need as she interacts with the executives at Technomar who must approve her operating budget?
You are a summer intern working for a major professional services firm. During your lunch break each day, you and fellow intern, Bob, eat at a local sandwich shop. One day, Bob's girlfriend joins you for lunch. When the bill arrives, Bob pays with a company credit card and writes the meal off as a business expense. Bob and his girlfriend continue to be "treated" to lunch for a number of days. You know Bob is well aware of a recent memo that came down from management stating casual lunches are not valid business expenses. When you ask Bob about the charges, he replies, "Hey, we're interns. Those memos dont apply to us. We can expense anything we want." QUESTIONS: 1. Who are the relevant facts? 2. What Are the Ethical Issues? 3. Who Are the Primary Stakeholders? 4. What Are the Possible Alternatives? 5. What Are the Ethics of the Altermatives? 6. What Are the Practical Constraints? 7. What Actions Should Be Taken?
Ali is the manager of a well reputed organization. He is assigned to auction some assets of the firm. Instead of organizing an auction Ali compiles a list of items and puts an advertisement on the paper stating that anyone who is willing to purchase the said articles for Rs. 1 Lac can contact him directly by 15th April 2021 through email only. Ahmed saw the advertisement and emailed Ali on 12th April asking for pictures of the items or if it was possible for him to view the items. Ali provided the pictures. Ahmed then emailed Ali that he is willing to purchase the said articles for Rs. 90 thousand and wrote that if Ali did not reply he will assume that Ali has accepted the offer. On 14th April at 3 pm, Saad emailed Ali and said the following, “I will purchase the listed articles.” On 14th April at 4:30 pm, Khan called Ali and brokered a deal to purchase the articles. Answer the following questions. Ali sold the articles to Khan. Is it a valid sale
A friend of yours owns a kitchen manufacturing business in Limerick City called Blurred Kitchens Limited. The business employs twenty-six people and these comprise fully qualified carpenters, trainee carpenters, sales staff, delivery staff and administration staff. Your friend has recently received a job proposal from a large developer in Donegal to manufacture and fit kitchens for 25 houses in a housing estate in Donegal Town. The work will take eight weeks to fully complete. He has made out the following financial details for you to study and has asked you to write a formal consultancy report for which you will be financially rewarded.Raw materialsThe chief raw material that Blurred Kitchens Limited uses in all its kitchens is an Indonesian timber. This timber will cost GH₵4,600 per kitchen. There is already, in stock, enough timber to make and fit 5 kitchens. This stock of timber had originally cost GH₵3,280 per kitchen but has since increased in price. Supplementary materials will…
The following situation is in chronological order. 1. Parker decides to buy a surfboard. 2. He calls Surfing USA Co. to inquire about its surfboards. 3. Two days later, he requests Surfing USA Co. to make a surfboard. 4. Three days later, Surfing USA Co. sends him a purchase order to fill out. 5. He completes and sends back the purchase order. 6. Surfing USA Co. receives the completed purchase order. 7. Surfing USA Co. completes the surfboard. 8. Parker picks up the surfboard. 9. Surfing USA Co. bills Parker. 10. Surfing USA Co. receives payment from Parker. In a memo to the president of Surfing USA Co., answer the following. (a) When should Surfing USA Co. record the sale? (b) Suppose that with his purchase order, Parker is required to make a down payment. Would that change your answer?
Paula Beane owns a restaurant franchise that is part of a chain of “southern homestyle” restaurants. One of the chain’s popular breakfast items is biscuits and gravy. Central Warehouse makes and freezes the biscuit dough, which it then sells to the franchise stores where it is thawed and baked in the individual stores by the cook. Each franchise also has a purchasing agent who orders the biscuits (and other items) based on expected demand. In March 2018, one of the freezers in Central Warehouse breaks down and biscuit production is reduced by 25% for 3 days. During those 3 days, Paula’s franchise runs out of biscuits but demand does not slow down. Paula’s franchise cook, Betty Baker, sends one of the kitchen helpers to the local grocery store to buy refrigerated ready-to-bake biscuits. Although the customers are kept happy, the refrigerated biscuits cost Paula’s franchise three times the cost of the Central Warehouse frozen biscuits, and the franchise loses money on this item for those…