Ellen Fishman was hired by Attics, Inc., a company that does attic refurbishments and
redesigns, to evaluate attics, provide homeowners with estimates, and, hopefully, sign
them up with contracts for their attics. Ellen provided an estimate of $11,000 to the
Kornbluths for a redesign of their attic.Because she was new at the job, Ellen forgot the
demolition costs in the estimate. However, the Kornbluths signed a contract Ellen
presented and put down a 10% deposit of $1,100. Attics, Inc.’s president has refused to
do the attic for anything less than $15,000, what the estimate should have been. The
Kornbluths have no experience with remodeling and had only one other estimate for the
refurbishment, which was $12,500.
a. Attics, Inc.need not perform the refurbishment because Ellen did not have authority
for the bid or contract.
b. Attics, Inc.must perform the refurbishment for $11,000 because Ellen had authority
to enter into the contract.
c.Attics, Inc.need not perform the contract for $11,000 because Ellen made a mistake.
d.none of the above
The “front page of the newspaper test” is an application of whether conduct gives the
appearance of impropriety.
a. True
b. False