Cengage Advantage Books: Law for Business 19th Edition by John Ashcroft,Katherine Ashcroft,Martha Patterson

Exercise 33

Jose Mendoza contracted with John Rast as a commission merchant to market Mendoza's pomegranate crop. He harvested and delivered the crop to Rast. When Mendoza got information and documents reporting grades, quality, weights, sales, receipts, and expenses, he noticed that some sales were significantly below market price. He alleged that Rast had pretended to sell the pomegranates but really reconsigned the product to subagents, who had accepted the fruit without setting a designated price. Rast had then used false and misleading documents to hide the amount due Mendoza. Mendoza sued, alleging violation of fiduciary duty by Rast and the subagents. Did Mendoza allege a violation of duties owed him by the subagents? [Mendoza v. Rast Produce Co. Inc., 45 Cal. Rptr. 3d 525 (Cal. Ct. App.)]