Annika is a well-known art collector that owns a business called Arts R Us. Anni

Question

Annika is a well-known art collector that owns a business called Arts R Us. Annika publishes a photograph of her and her friend Victoria in the local newspaper with an ad saying, “We pay for great art!” Victoria is wearing an Arts R Us shirt from Annika’s company, but does not have any actual authority to purchase art on behalf of Arts R Us.

Wade, an artist, sees the Victoria with the Arts R Us shirt and recognizes her from the ad. Wade approaches Victoria with his latest painting and asks if Arts R Us will purchase it from him. Victoria hands Wade Annika’s Arts R Us business card, takes the painting and says she will have Arts R Us send him a check. Victoria instead runs off with the painting and is nowhere to be found. Wade contacts Annika from Arts R Us for payment. Could Arts R Us be obligated to pay Wade? Explain why or why not.

Explanation / Answer

Yes Arts R Us are obligated to pay Wade for the stolen painting. Victoria's picture was posted in the actual ad in the newspaper along with Annika who owns the business of Arts R Us. Publishing a picture of herself with Victoria revealed that even Victoria represents Arts R Us. When Wade approached Victoria, it was based on the assumption that even Victoria represents the company. Arts r Us is obligated to pay Wade as the published picture shows that Victoria represents them.

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