Law for Business 12th Edition by James Barnes,Terry Dworkin,Eric Richards

Exercise 8

Video Case: See "Martin Manufacturing." Immediately after being fired by Martin Manufacturing (see problem case 2), Mitch decided to squeeze one last bit of profit from his relationship with Martin. Thus, he called a customer with whom he had dealt on many occasions and ordered several cases of fasteners on Martin's behalf. Later, he resold the fasteners himself, pocketing the money. Is Martin liable to the supplier for the fasteners? In any event, what should Martin do to protect itself against cases like this?