James was an ordinary salesman for Bulldog Electric Ltd.,but his business card read "Territory Manager." He had no authority to sell his company's products for a reduced price,yet he told a potential customer,"I'll give you a 10 percent reduction if you place an order today." Legally speaking,will the customer be able to get the reduced price should he sign the contract?

Question

Quizplus · Accepted Answer

James may not have had actual authority to offer a discount, but he had apparent authority, which means the customer had reason to believe that James had such authority based on his job title and the fact that he was representing the company. Therefore, the customer could reasonably expect to get the reduced price if he signed the contract based on James' representations.

James Was an Ordinary Salesman for Bulldog Electric Ltd