Grant Got a Job with Ace Computers Co

question 157

Multiple Choice

Grant got a job with Ace Computers Co.(Ace) as a salesman.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 he would 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 an 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,Ace's sales manager,heard of the deal,he fired Grant and said Ace would not go through with the contract.However,the old woman 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 would not be bound because Grant failed to follow the exact instructions he had received.
• B)Ace is not bound by the contract because no representations of authority were made by it to the old woman.
• C)Ace would be bound because Grant acted within his apparent authority.
• D)Brown is personally liable to the old woman because he is the employee of the company who decided not to honour the contract.
• E)Grant had implied authority to sell computers on time; selling computers necessitates selling on time,despite the prohibition.

Identify conditions under which tacit collusion is difficult to achieve or maintain in markets.

Recognize the role of international cartels, particularly OPEC, in affecting global markets.

Explain the tit-for-tat strategy and its implication for sustaining cooperation or competition among firms.

Assess factors that limit the effectiveness of tacit collusion in industries.

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Definitions:

National Debt

The total amount of money that a country's government has borrowed.

Taxes

Mandatory economic impositions or alternative kinds of charges placed on taxpayers by governmental bodies to finance state expenditure and diverse public costs.

Real GDP

The measure of the value of all goods and services produced within a country over a specified period of time, adjusted for inflation.

Government Purchases

All goods and services bought by the federal, state, and local governments.