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Business Associations

Ads Plus Advertising, Inc. v. Ault

Updated 1/5/2024 PG

Alan and Robert are brothers. Alan ran car dealership called PAR. He hired Ads Plus to do some junk mail advertisements for the dealership. The dealership paid for the first few ads but then stopped paying. Ads Plus sued for the rest of the money.

There are some issues unrelated to agency that complicate the facts, but all you need to know for now is that Robert and Alan's liability will turn on whether Alan was acting as an agent for PAR or whether he was acting for himself. If Alan was acting for himself, the court will find Alan and Robert both liable. If Alan was acting as an agent of the car dealership, then only the car dealership is liable.