Business 8th Edition by Marianne Jennings

Exercise 31

Dewey Nabors operates a real estate brokerage under the trade name Nabors Company, which shares an office, telephone, and secretary with Midtown, a real estate management corporation that had hired Robert Keaton to oversee the completion of a shopping center. Mr. Nabors asked Mr. Keaton to order siding, pipes, and flooring for his personal residence and directed him to order these materials in the name of Nabors Company. Mr. Keaton contracted with Richardson, Inc., for the flooring. Richardson understood that Mr. Keaton was working for Midtown and billed Midtown for Mr. Nabors's materials. Mr. Nabors refused to pay for the materials because he was dissatisfied. Is Midtown liable? What theory is Richardson using? [ Midtown Properties, Inc. v Richardson, Inc., 228 S.E.2d 303 (Ga. 1976)]