Fact Pattern 14-1
Emile owns Emile's Used Car Emporium. Several people work for him at the Emporium. When Emile is gone, he leaves one of his best salespersons, Meg, in charge. Over the years, Emile has given Meg the authority to contract with vendors, negotiate sales, and conclude car sales contracts in his name.
One August, Emile takes a long vacation, leaving Meg in charge. While he is gone a hurricane hits Florida where the Emporium is located, causing severe damage. Because Emile is floating down the Amazon, Meg cannot reach him for instructions. She decides that rather than leave the place in shambles, she will hire people to repair the Emporium.
Meg hires a carpenter to rebuild a wall that was blown down by the storm. Phil, the carpenter, is busy at work on his scaffold when Meg's Scottish terrier Adam, who she keeps with her at work, plows into the scaffolding while chasing a cat. Phil is knocked off the scaffold and falls ten feet to the ground, suffering a broken leg.
-Refer to Fact Pattern 14-1. One day while Emile is out of the office, Josef, another sales person, enters into a contract on Emile's behalf with a local coffee vendor who stopped by to offer daily coffee service to the dealership. Emile:
A) is bound by the contract if Josef was acting beyond his authority
B) is not bound by Josef's actions
C) may be bound by the action if he ratifies the contract
D) is bound by the contract if Josef was acting beyond his authority and may be bound by the action if he ratifies the contract
E) is not bound by Josef's actions or may be bound by the action if he ratifies the contract
Correct Answer:
Verified
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