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Case Citations [i] (Fall 2025)

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                             THE AMERICAN


                               LAW INSTITUTE



                                       Fall 2025 Citations



                                   AGENCY 2D



Generally

D.R.I.2024. Cit. generally in cases cit. in sup. Seller of fish sued buyer for, among other things, breach
of contract, alleging that buyer owed an outstanding payment for delivered fish pursuant to an agreement
between the parties; buyer argued that seller's affiliate, with whom it regularly conducted business,
modified the agreement by reducing the price of fish in response to a global pandemic that affected the
fish market and by later informing buyer that buyer's debt was settled. Following a bench trial, this court
entered judgment for seller, holding that seller's affiliate had apparent authority to modify the price of
fish under Rhode Island law. The court noted that both Rhode Island and federal common law looked to
the Restatement Second of Agency for agency issues and that seller's affiliate had apparent authority to
enter contracts on behalf of seller based on the parties' course of dealing and usage of trade. Chilean Sea
Bass Inc. v. Kendell Seafood Imports, Inc., 735 F.Supp.3d 80, 93.



                         CHAPTER 1. INTRODUCTORY MATTERS

                                   TOPIC   1. DEFINITIONS

§ 1. Agency; Principal; Agent

C.A.4, 2024. Subsec. (1) quot. in case quot. in sup. Attendees at a professional football game, who were
injured when a railing collapsed in the stadium, filed a negligence action against, among others, football
team owner and stadium owner. The district court denied defendants' motion to compel arbitration
pursuant to an arbitration clause contained in plaintiffs' tickets for the game, finding that plaintiffs'
friend, who had purchased the tickets for plaintiffs, did not have apparent authority to enter the
arbitration clause on behalf of plaintiffs, nor did plaintiffs ratify or assent to the arbitration clause. This
court vacated and remanded, holding that defendants' reliance on the purchaser's apparent authority to
act on behalf of plaintiffs was reasonable, and thus plaintiffs were bound by any arbitration clause to
which the purchaser was bound. Relying on the definition ofan agency relationship under Restatement
Second of Agency  § 1, the court reasoned that plaintiffs manifested their acceptance that the purchaser

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