Asked by Ishara Ranathunga on Jul 29, 2024
Verified
Jackson is a car purchasing agent for Highway Motors,a used car dealer.Jackson attends wholesale auto auctions and notices that some autos have consistently greater demand and higher prices.Jackson forms a car purchasing partnership with Viva Inc.to buy these cars from "for sale by owner" advertisements and then sell them in Viva's name at the auto auctions where Jackson purchases them for Highway.Discuss if Jackson has violated any duty he owes Highway Motors.
Wholesale Auto Auctions
These are exclusive marketplaces where dealers buy and sell vehicles in bulk, often at lower prices, primarily for resale purposes.
Car Purchasing Partnership
An agreement between individuals or entities to jointly purchase a car, often to benefit from bulk buying conditions or shared use.
Duty
A moral or legal obligation; a responsibility or task that one is required or expected to perform.
- Gain insight into the commitment of allegiance an agent must maintain towards their principal and the outcomes of failing to fulfill this commitment.
- Evaluate the legal implications and remedies available when agents violate their duties or when agency principles are breached.
Verified Answer
TC
Theresa ChidinmaAug 02, 2024
Final Answer :
Jackson has violated the duty of loyalty to Highway Motors which implies strict and continuing faithfulness to the principal's best interests at all times.He should have made full disclosure to Highway and obtained their consent before advancing his own interest.
Learning Objectives
- Gain insight into the commitment of allegiance an agent must maintain towards their principal and the outcomes of failing to fulfill this commitment.
- Evaluate the legal implications and remedies available when agents violate their duties or when agency principles are breached.