John Has Just Joined a Company as the Merchandise Buyer

question 71

Multiple Choice

John has just joined a company as the merchandise buyer for giftware.He has the authority to place orders of up to $100 000 for his new company.He wants to place an order with a new supplier for $250 000.In this case, John __________ part of the market for the giftware because __________.

• A)is; he has very little buying power
• B)is; has the need for the giftware
• C)is not; he is willing to spend the company's money
• D)is; he has the desire for the giftware
• E)is not; he does not have the authority to purchase

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Definitions:

Doctrine

A principle or body of principles presented for acceptance or belief, as by a religious, philosophical, scientific, or political group; policy.

Third-Party Estoppel

A legal principle that prevents a party from asserting or denying a fact due to another's act, when the third party has relied upon that act or representation.

Implied Authority

The power assumed by an individual as part of their role or position, enabling them to perform tasks or make decisions inherent to their duties.

Express Authority

The power granted to an agent explicitly by the principal, typically through direct, clear instructions.