Assignment task:
The president of Franklin decides to hire Jim Olsen as Franklin's new account manager for its home theater suppliers. He tells Jim that he (Jim) has the job and to go talk to Lois Lane to work out the details of salary, start date, etc., stating that "she handles all of that for Franklin." Jim meets with Lois and they agree on a specific salary. When Franklin's president learns of the specifics that Lois negotiated with Jim, he hits the roof, claiming that the salary Lois agreed to is too high. Is Franklin bound by Lois' agreement with Jim? Why? • What law applies to this situation? (You will find information about possible liability for contracts entered into by agents in the assigned readings.) • How does that law apply to this situation to help you determine whether the agreement Lois entered into with Jim on behalf of Franklin is binding on the company? In other words, based upon the law, what is your answer to the questions, and why?