What is a business’s liability regarding an unsolicited advertising company which called and talked to the receptionist about advertising?

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What is a business’s liability regarding an unsolicited advertising company which called and talked to the receptionist about advertising?

I do not know what was said butwas told that she verbally agreed to them doing advertising for the company ($475 cost). We have not received any follow up calls or information since that call with the receprioinst. We don’t advertise through these companies. I now have a bill collector saying they have a verbal contract (by the receptionist) and is asking for $1000 for late fee, etc. Our company requir es a PO for all purchases and the purchasing dept was never contacted. Any advise on how to hanldle this issue?

Asked on August 23, 2012 under Bankruptcy Law, Arizona

Answers:

Anne Brady / Law Office of Anne Brady

Answered 9 years ago | Contributor

You can not be charged late fees if you were never billed.  And if you were never billed, why did they turn it over to collections?  This just doesn't add up.  Ask to see the advertisement that your receptionist apparently purchased.  If your receiptionist admits that she agreed to advertising with them, then she is your employee/agent and you do need to pay for the ad.  But the late fees are ridiculous if you were never billed.  If you were billed and you ignored the bills then you may need to pay the late fees as well.  The fact that your company has a policy requiring a PO for purchases does not get you off the hook if one of your employees contracts on behalf of the company to purchase something for the company.


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