4288 By selling the principal's goods on an open-price basis to buyers who were permitted to resell them before negotiating a purchase price that would permit those buyers to realize a profit, a commission merchant authorized by the principal to hire subagents made the buyers subagents of the principal; as subagents, the buyers had a fiduciary duty to the principal which included an obligation to report and deliver to the principal all proceeds from the sale; breach of that duty by the subagents would constitute conversion of the withheld profits.CitationMENDOZA v CONTINENTAL (Pomegranate Conversion) 140 CA4 1395 [See: CivC 2349, 2351; Fischer v Machado 50 CA4 1069, T/AT 12/96; Burlesci v Petersen 68 CA4 1062, T/AT 2/99; Streit v Covington 82 CA4 441, T/AT 9/00]
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