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Edward Is the President of Jones and Sons Ltd

Question 4

Multiple Choice

Edward is the president of Jones and Sons Ltd.,Wholesalers (J&S) .He recently hired George Cummings as his national marketing and advertising manager.Yesterday,Edward took George to a convention where,after a few drinks,he introduced George to the president of Sears as his national sales manager.The next day,after his hangover had subsided,Edward called the president of Sears and told him the truth about George.A couple of days later,George entered into a contract with Sears under which J&S sold 2 million dollars worth of furniture to Sears.J&S now refuses to honour the contract.If Sears sues J&S on the contract


A) Sears will lose because the contract is unconscionable.
B) Sears will lose,but will have a quantum meruit claim.
C) Sears will win because Edward held out George as the national sales manager of J&S.
D) Sears will lose because final acceptance of the contract had to come from J&S.
E) Sears will lose because its president knew that George was only the national marketing and advertising manager of J&S.

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