Reference no: EM131693115

1. Sam is an employee of Binky, Inc. While delivering a truckload of binkies to a local retailer, Sam decided to stop at his bank to deposit his paycheck. The bank is three blocks from the retailer and it takes approximately 15 minutes to deposit a check. While Sam is in the bank, the truck rolled down the street because Sam negligently forgot to set the parking brake. The truck crashed through the window of Market, killing two people and causing $500,000 in damage. Discuss the issues involved in determining whether Binky, Inc. is liable for the damages at issue. If Binky, Inc. is liable, can it recover against Sam for the damages?

2. Molly wants to buy a vacant lot that is for sale in her neighborhood. The problem is that she had a skirmish with the current owner, Ben, over his dog barking at all hours of the night. Molly asks Sam if he will purchase the lot on her behalf without telling Ben that she will be the true owner. Sam agrees and reaches an agreement with Ben. A few months after the purchase, Molly begins to do some work on the lot. Ben sees her and asks what she is doing. Molly tells him that she was the true purchaser. Ben becomes furious and yells at her that he will have the sale rescinded and sue both Molly and Sam for fraud. What will be the likely result if Ben sues Molly and Sam?

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