Quick Supplies Company (QSC) requires its customers to pay by check. Ron, a QSC driver, tells customers on his route that they can pay him with cash. When QSC learns of Ron's collections, it takes no action to stop it. Ron steals some of the cash. QSC may suffer the loss under Ron's

Question

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QSC may suffer the loss under Ron's apparent authority because the company did not take action to stop Ron from collecting cash, which could lead customers to reasonably believe that Ron had the authority to accept cash payments on behalf of QSC.

Quick Supplies Company (QSC) Requires Its Customers to Pay by Check