extra credit widget s inc

Suppose that a business, Widgets, Inc., has operations only in Tennessee. Widget’s sells no products outside that state and has no other operations anywhere else. Chuck, a former sales representative for Widgets, Inc. now lives in Virginia. Chuck realizes that there are no Widgets, Inc. brand widgets offered for sale in Virginia. He decides that despite the retail price, he can still make a profit by selling Widgets, Inc. widgets in Virginia. After all, Chuck already owns a retail business himself and can easily incorporate the product line into his storefront.

  • For six months, every week, Chuck rents a RYDER truck and journeys to Tennessee where he purchases a truckload of widgets from Widgets, Inc.
  • RYDER is fully aware of the nature of the transported items and initially pays particular attention to Chuck’s attire each time he appears to rent the truck. Chuck wears customized attire from his former employment with Widgets, Inc. The shirt bears the name Widgets Inc. and the logo is quite noticeable.
  • Chuck wears his custom attire when driving to Tennessee as he expects to visit his former colleagues when at the company. He thinks it is funny to wear the old uniform when visiting the company. He visits and talks to his friends and colleagues, has lunch every time and leaves with his purchase.
  • Chuck experiences monetary issues in his personal life. He rents the RYDER truck but fails to pay RYDER truck for several rental periods.
  • RYDER then submits an invoice to Widgets, Inc. for payment.

QUESTION: Should Widget’s pay the invoice, why or why not? This question requires an Agency Law Analysis and application in your answer for credit.

 
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