Robin and Jimmy owned the RJpartnership. Robin, without consulting with Jimmy, appointed hercousin Becka as RJ’s exclusive sales agent for the Kansas City,Missouri area. Jimmy, without consulting with Robin, hired hiscousin Karlie as RJ’s exclusive sales agent for the Kansas City,Missouri area. At first, there was considerable conflict andtension between the two agents, but, in 2019, they began toovercharge customers, collecting a 25% down payment from customers,giving half to RJ and splitting the balance between themselves.
In early 2020, both agents wereterminated by RJ. In January, all of Becka’s and Karlie’s customerswere notified of the termination. In addition, RJ identified allpotential customers in Kansas City, Missouri and they were allnotified of the termination of the agents.
To avoid criminal prosecution, Beckaescaped to Greenland for the weather (it does have “green” in itsname). Karlie decided to attempt two more big scores. She contactedtwo of RJ’s customers and representing herself as RJ’s agent sold$100,000 of merchandise to Rebecca and $50,000 of merchandise toMary Beth. Rebecca was a former customer whom Karlie had soldmerchandise to when she had actual authority from RJ. Mary Beth wasfrom Kansas City, Kansas and although she was a prior customer ofRJ she had had no prior dealings with Karlie. Karlie collected a25% down payment and joined Becka in Greenland.
Answer the followingquestions, providing a legal rationale for eachanswer.
- What cause of action would Becka and Karlie have againstRJ?
- What argument would Rebecca made that RJ is liable under thecontract? What reply would RJmake?
- What argument would Mary Beth made that RJ is liable under thecontract? What reply would RJmake?
- Between Rebecca and Mary Beth who has the strongestargument?
