Dave Kartchner had rented a storage locker at Desert Storage on a month-to-month basis for three years. His contract provided that he could end the lease at any time by giving ten days notice to the managers of the storage facility. On May 20, Dave went

to the office and told a young man running the front desk that he would be leaving his locker at the end of the month, May 31. The young man made a notation and reminded Dave to clean out his locker. In June, Dave received a notice from Desert Storage that he owed $25 rent for June plus a $7 late fee. He called to explain he had given notice of termination. The managers explained that their son, who was working the desk that May 20, had no authority to take notices of termination. Will Dave be liable? Why or why not?


The son may not have had actual authority but he had apparent authority that he had been clothed with when his parents allowed him to manage the office in their absence. Part of office management includes dealing with tenants and taking notices of defects, rent, terminations, and so on. The contract should have specified otherwise or the son should have explained the limitations of his authority, for without such express limitations he had apparent authority to take Dave's notice.

Business

You might also like to view...

Economic theory indicates that as a product is marketed, price reductions will have to be made to sell additional units

Indicate whether the statement is true or false

Business

________ is the removal of positive consequences following an unwanted behavior.

A. Performance-avoid orientation B. Extinction C. Negative reinforcement D. Punishment E. Positive reinforcement

Business

Which of the following factors does not dictate how many of each type of salesperson a particular company should have?

A. Product use and characteristics B. Types of marketing channels C. Number and characteristics of customers D. Product complexity and price E. Number of marketing channels

Business

Which of the following is a difference betweendemographic segmentation and geographic segmentation?

A. Demographic segmentation refers todividing the market based on how people behave toward various products, whereas geographic segmentationrefers todividing the market based on consumer attitudes, interests, values, and lifestyles. B. Demographic segmentation refers todividing the market based on measurable characteristics about people, whereas geographic segmentation refers to dividing the market based on where consumers live. C. Demographic segmentation refers todividing the market based on where consumers live, whereas geographic segmentation refers to dividing the market based on how people behave toward various products. D. Demographic segmentation refers todividing the market based on consumer attitudes, interests, values, and lifestyles, whereas geographic segmentation refers to dividing the market based on measurable characteristics about people.

Business