Charlena,a shelf-stocker,offers Megan the post of Vice-President of Procurement to express appreciation for Megan's hard work in stocking the shelves at Charlena's store,Thrift City.Megan creates business cards with her new title on them and uses one to purchase a new truck in Thrift City's name from Highway Auto.Which of these types of authority,if any,has Charlena given Megan?

Question

Quizplus · Accepted Answer

Charlena likely did not give Megan express authority to purchase a truck, and there is no operation of law authority to make this purchase. However, Charlena's offer of Vice-President of Procurement may have created apparent authority for Megan to make purchases on behalf of Thrift City. Highway Auto may have reasonably believed Megan had the authority to make the purchase based on her title and business card.

Charlena,a Shelf-Stocker,offers Megan the Post of Vice-President of Procurement to Express