Law for Business 10th Edition by James Barnes,Terry Dworkin,Eric Richards

Exercise 6

Arthur Jensen, Inc., was a corporation engaged in the housing construction business. Arthur Jensen owned over half of the corporation's stock and served as its president. Alaska Valuation Service (AVS) conducted housing appraisals for Jensen on numerous occasions over the years. When AVS took the orders for appraisals, it was not aware that it was dealing with a corporation. It believed that it was dealing directly with Jensen. Jensen never specifically informed AVS of his status as an agent for Arthur Jensen, Inc. AVS attempted to hold Jensen personally liable for the appraisal services. Is Jensen personally liable as an agent for an undisclosed principal?