Ahmed is an agent for Bader for maintaining Bader’s antique cars collection, including sale and purchase of antique cars. Ahmed has had this position for several years, but recently Ahmed has developed a cocaine habit. He recently sold one of Bader’s cars and kept some of the money himself to buy some cocaine. Soon thereafter, Ahmed was declared bankrupt. The government then notified Ahmed that he had sold the maximum allowable number of cars in a year without getting a dealer’s license. Shortly thereafter, Bader was on a secluded island and died, which no one knew about until 2 weeks later. Discuss the effect of these events on the existence of the agency.
Ahmed is an agent for Bader for maintaining Bader’s antique cars collection, including sale and purchase of antique cars. Ahmed has had this position for several years, but recently Ahmed has developed a cocaine habit. He recently sold one of Bader’s cars and kept some of the money himself to buy some cocaine. Soon thereafter, Ahmed was declared bankrupt. The government then notified Ahmed that he had sold the maximum allowable number of cars in a year without getting a dealer’s license. Shortly thereafter, Bader was on a secluded island and died, which no one knew about until 2 weeks later. Discuss the effect of these events on the existence of the agency.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Ahmed is an agent for Bader for maintaining Bader’s antique cars collection, including sale
and purchase of antique cars. Ahmed has had this position for several years, but recently Ahmed
has developed a cocaine habit. He recently sold one of Bader’s cars and kept some of the money
himself to buy some cocaine. Soon thereafter, Ahmed was declared bankrupt. The government
then notified Ahmed that he had sold the maximum allowable number of cars in a year without
getting a dealer’s license. Shortly thereafter, Bader was on a secluded island and died, which no
one knew about until 2 weeks later. Discuss the effect of these events on the existence of the
agency.
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