Reference no: EM132231907

George Michael is the sole owner and manager of the Frozen Banana Stand. He purchases and receives all supplies, maintains the banana stand, and runs the business’ finances. Maeby and T-Bone are in charge of making chocolate covered frozen bananas and operating the register. One day, when George Michael is on his lunch break, Maeby receives a banana delivery from Gangee’s Bananas, which she has never done before. Instead of simply signing for the delivery, Maeby tells Gangee’s that they would like to order 1,000 pounds of bananas (this is 4 times as many bananas as George Michael usually orders).

When the 1,000 pounds of bananas are delivered, George Michael is so angry he immediately fires both Maeby and T-Bone. The Banana Stand employee handbook clearly states that employees will be terminated only for arson or excessive tardiness. Excessive tardiness is defined as showing up late for one’s shift three or more times. George Michael, as manager, strictly follows the guidelines set forth in the Banana Stand handbook. Maeby has never been late to work. T-Bone has been late two times.

Is Gangee’s liable to the Frozen Banana Stand for accepting the order from Maeby? Why or why not? Does Maeby have any legal claims against George Michael? Why or why not? Does T-Bone have any legal claims against George Michael? Why or why not?