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Clark, a Movie Producer, Was Allowed to Work at a Movie

Question 242

Multiple Choice

Clark, a movie producer, was allowed to work at a movie production company's offices (ITC) out of courtesy. His business card listed the ITC address and his phone calls were handled by ITC staff. In the office, he made a deal to produce a movie for another company. When problems developed and the company, presuming Clark worked for ITC, sued ITC. The court would be likely to hold that ITC:


A) ratified Clark's actions and so became liable for his actions
B) expressly accepted contracts negotiated by Clark, so was liable for the failure to perform
C) had no liability because Clark merely was allowed to use office space at ITC
D) had no liability because Clark had no authority to represent ITC in movie decisions
E) none of the other choices

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