Cengage Advantage Books: Fundamentals of Business Law Today 10th Edition by Roger LeRoy Miller

Exercise 22

Agent's Duties to Principal. William and Maxine Miller, shareholders of Claimsco International, Inc., filed a suit in an Illinois state court against the other shareholders, Michael Harris and Kenneth Hoxie, and John Verchota, the accountant who worked for all of them. The Millers alleged that Verchota owed them a duty, which he breached by following Harris's instructions to adjust Claimsco's books to maximize the Millers' financial liabilities, falsely reflect income to them without actually transferring that income, and unfairly disadvantage them compared to the other shareholders. Which duty are the Millers referring to? If the allegations can be proved, did Verchota breach this duty? Explain. [ Miller v. Harris, 2013 Ill.App. 120512, 985 N.E.2d 671 (2013)] (See Duties of Agents and Principles.)