Question

2. JimBiz, Inc. runs an online retail business through its website, JimBiz.com. In addition to its own sales of a wide range of retail products, JimBiz sells advertising space on its site. It does so through a team of in-house sales people, whom advertisers contact by calling a number on the Contact Us" page of the website. (Often enough, though, Jim Biz's sales people make cold calls to potential advertisers, which they can follow up with marketing materials including their business cards and correspondence on company letterhead.) Anyway, Xixi, one of the firm's brightest salespeople, recently scored a huge victory, selling a one-year advertising deal with CarroForce, the nationwide chain of auto dealerships. Or at least she thought it was a victory, until her supervisor pointed out that under the firm's internal sales team handbook, contracts in excess of six months Midterm Study Guide Page 2 required approval by JimBiz's CEO. Meanwhile, a different sales person, Donovan, has started behaving erratically lately, and hasn't made any sales in a while, so JimBiz provides him written notice that his job will be terminated and that he is no longer entitled to act on JimBiz's behalf. However, JimBiz management fears that after receipt of notice Donovan will go 'rogue" and will try to retaliate by committing JimBiz to a string of unfavorable advertising contracts. a.) Is the contract between JimBiz and CarroForce enforceable? Why? b.) How complicated would it be for JimBiz to ignore liability for unauthorized contracts entered into by Donovan? Expand on personal, joint and several limited liability. c.) If not a corporation what other business model should JimBiz consider given its circumstances?

Business Law Question

please complete the following questions

Answer 1

Answer A-

The contract between JimBiz and CarroForce is enforceable as the sales rep of JimBiz, Xixi has made a contract for her organization's sake and that the salespersons are treated as the agents of the organization.

The guidelines that were composed identified with the validation of CEO by the sales rep in the event of leads that require over a half year of contract was authoritative on Xixi and not CarroForce as it was not announced to CarroForce. Thus the contract is enforceable on JimBiz.

Answer B-

On the off chance that Donovan goes into unauthorized contract, at that point it would be enforceable on the business to perform this contract. In the event that JimBiz is a sole owner organization than the total liability of the contract will be on the proprietor of the organization.

In the event that JimBiz is an association organization, at that point the liability of contract will be on the accomplices of the business and on the off chance that JimBiz is a corporation, at that point the liability would be on the business and not on the proprietors of the business.

Answer C-

JimBiz ought to consider the limited liability association form of business in order to alleviate the danger of going into unauthorized contract over the individuals who make the contract.

It should regard the entirety of the salespersons as its speculators to a specific measure of offers and should then make them liable for the contracts they make. In this circumstance they will attempt to make those contracts that are approved in nature.

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