Reference no: EM133230135

Harry was a traveling salesman who called upon customers selling toys manufactured by Tommy. Harry is paid on a commission basis, sets his own hours, drives his own car but hangs a sign on the car that reads "Tommy's Toys." On Thanksgiving Day while returning from his grandmothers house, he decides to stop at Martha's house and make a delivery. He pulls up outside, puts his sign out and leave the car running while going into her house. Tommy has instructed Harry to always turn off his car when leaving it unattended. The customer, Martha, did not place an order but instead gave Harry $1000 to give to Tommy in payment for an outstanding personal debt that she owed to Tommy.

While in the house, the car fell into gear and ran down an old woman named Ida who was in a crosswalk. When Harry discovered what happened, he runs off to South America with the $1000.

Ida sued Tommy for damages. Explain the legal liability of Tommy, if any, commenting upon the defenses and arguments each side will likely put forth. Decide the case.

If Tommy sues Martha for the previous $1000 debt, should he be able to recover? Explain.