Cengage Advantage Books: Business Law 9th Edition by Arnold Goldman ,William Sigismond

Exercise 13

A number of businesses purchased ads in a yellow pages publication published by Bell Atlantic and Nynex. The ads were solicited by an agent, R. H. Donnelley, Inc. After a problem arose, the businesses sued both telephone companies and Donnelley for breach of contract. Donnelley claimed that it was not liable because it was an agent of a disclosed principal. Will Donnelley succeed? (Cruz v. Nynex Information Resources, 703 N.Y.S.2d 103)