Please use the attached for references and outside source.

#1

AAA Cab Company Inc.

Facts: This company is a referral service for independent cab owners who agree to put on the top of their cabs a lighted sign of the above company. To get in touch with the company the public would call the number on the cab sign or out of the phone book.
The cabs are individually owned and maintained by their owners.

Racing Ray owns cab 100mph.
Fred Stumble calls the above company to take him from his home outside of the city of Mistake into the city so he can do some shopping.
The above company calls Racing who is near Stumble and he races to pick him up. On the way to Stumble’s destination, Ray picks up a package at the company headquarters to deliver for the boss near where Stumble is going.

On the way to Stumbles destination Ray hits a car coming through an intersection and injures Mumbles and Stumbles.
After the accident is resolved, Ray who now has the company car, because of the accident, decides to go see his girlfriend across town and deliver the package. On the way back. Before he gets to his girlfriends house Ray hits Unbelievable walking her dog Oops. Ray gives Unbelievable the company card, and then delivers the package. After delivering the package Ray’s car backfires causing Flyer to jump in the path of a car injuring him.

Question:
1. To what parties are The company and Racing liable. Are there any Defenses available to the company and Racing.

#2

Winsome Ways is a boutique in New Market, Maryland that sells various accessories for women. Amy Brown is the sole owner and has two employees, Jack and Connie. Before leaving for a long vacation, Amy sends a form letter to her suppliers stating that while she is away on vacation Connie will manage the store and sign any required paperwork on behalf of the business. On the day before her departure, Amy instructs Connie that Connie will manage the store while Amy is away and sign paperwork for the business but that she may not purchase any new lines of merchandise from the suppliers or any other seller of merchandise. A week into acting as manager, a salesperson from Jewels, a regular supplier, convinces Connie to purchase a line of jeweled eyeglass cases. Connie signs an agreement to purchase five of the eyeglass cases, and she agrees to purchase five eyeglass cases each month during the next twelve months.

The following day Jack is working at Winsome Ways alone while Connie takes a lunch
break. A salesman, who works for Teapots, a regular supplier of teapots, convinces Jack to sign a contract committing Winsome Ways to the purchase of a number of expensive china teapots together with a two year contract for Winsome Ways to purchase the same type and number of pots every three months.
Amy returns from her vacation and learns of the new contracts. She calls Jewels and tells them to pick up the eyeglass cases and she calls Teapots and tells them not to deliver any teapots, as she will not accept them. Both Jewels and Teapots tell her that the contracts had been entered into with Winsome Ways and she will be held responsible.

Question:
1. Amy comes to you, a Maryland lawyer, to obtain advice on whether she has any liability to Jewels and Teapots. What advice would you give to her and why?

2. Explain fully all concepts and defenses involved as to all parties in your answer.