Reference no: EM132180601

Ali is the most knowledgeable, experienced and trusted bartender in the Lame Duck Restaurant. It is very hard to keep good people and Johnny fears losing him to a large international restaurant that has recently opened. To try to keep Ali, Johnny gives him a pay increase and the title "Manager" (although his actual duties do not change - he is still mainly responsible for the bar and has no authority to make Semester 2, 2017 FINAL EXAMINATION Page 5 of 5 LAW105 - Introduction to Business Law THIS EXAMINATION PAPER AND SUPPLIED MATERIALS ARE NOT PERMITTED TO BE REMOVED FROM ANY EXAMINATION VENUE IN ANY CIRCUMSTANCE. THIS EXAMINATION IS PRINTED DOUBLE-SIDED. commercial decisions or enter into contracts other than those with customers). Johnny introduces him to people as his "Manager" and encourages him to go to restaurant festivals where managers gather. At a Darwin Food Festival, Ali meets Deepak, a wine representative from Wines Are Us, and, after lengthy discussions, he agrees to purchase wine valued at over $43,000 for the restaurant. When Johnny receives the invoice he refuses to pay and seeks your advice. Is Johnny liable on the basis of Ali having acted as his agent? Might Ali have any liability and, if so, on what basis?