Grant Got a Job with Ace Computers Co

question 18

Multiple Choice

Grant got a job with Ace Computers Co.as a salesperson.He was given a course in sales 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 on time to a 70-year-old woman.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,the purchaser 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 the purchaser.
• 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 time; selling computers necessitates selling on time, despite the prohibition.
• E) Brown is personally liable to the purchaser because he is the employee of the company who decided not to honour the contract.

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Definitions:

Renewable Energy

Energy from resources that are naturally replenishing, such as solar, wind, water, and geothermal heat.

Short-termism

The concentration on short-term projects or objectives for immediate profit at the expense of long-term security.

Resource Constraints

Limits on the availability of factors of production that reduce a company’s ability to produce goods and services.

Institutional Investors

Organizations that invest large amounts of money on behalf of their members, including pension funds, insurance companies, and mutual funds.