Doug Everett Worked for Columbia Power as a Consultant for Businesses

question 95

Multiple Choice

Doug Everett worked for Columbia Power as a consultant for businesses in reducing their power bills.Columbia terminated Doug and provided notice to all of his customers that Doug was no longer working with Columbia.A business that had heard about Doug from one of his former clients called Doug and asked him to help with reducing power bills of their offices and plants.Doug still had his materials from Columbia and negotiated a contract with the business for Columbia to provide certain equipment to the business and also for specific new rate plans for the business.Columbia did not know of the agreement and now refuses to honor it.Which of the following statements is correct?​

• A)​Columbia is not liable on the contract with the business because Doug's actual (express and implied authority) had terminated.
• B)​Columbia is not liable because a former employee cannot negotiate contracts with customers after his termination.
• C)Columbia is liable on the contract because Columbia did not give general notice of termination.
• D)Doug is liable on the contract, but not Columbia.

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Definitions:

Christine Ladd-Franklin

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Part of the mind that is inaccessible to the conscious mind but that affects behavior and emotions.

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A set of theories and therapeutic methods related to the study of the unconscious mind, which together form a method of treatment for mental disorders.

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Actions that are in violation of the legal codes and are punishable by law, ranging from theft and fraud to violent crimes.