Grant Got a Job with Ace Computers Co

question 117

Multiple Choice

Grant got a job with Ace Computers Co. (Ace) as a salesman. He was given a course in salesmanship by Ace, business cards, and several of the company's order forms and brochures, and he was assigned an area in which to sell computers door-to-door on behalf of Ace. Grant would be paid on a commission basis. At his first house, he was so excited by the interest shown that he forgot the explicit instructions he had received-only cash sales permitted. As agent for Ace, he sold a computer to a Janet. She was to pay $25 per month for eight years because that was all she could afford. When Brown, sales manager of Ace, heard of the deal, he fired Grant and said he would not go through with the contract. However, Janet liked the computer very much and insisted that Ace provide her with one within the week as required by the contract. Which of the following accurately describes the legal position of the parties?

• A) Ace is not bound by the contract because no representations of authority were made by it to Janet.
• B) Ace would not be bound because Grant failed to follow the exact instructions he had received.
• C) Ace would be bound because the agent Grant acted within his apparent authority.
• D) Grant had implied authority to sell computers on credit; selling computers necessitates selling on credit, despite the prohibition.
• E) Brown is personally liable to Janet because he is the employee of the company who decided not to honour the contract.

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