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James Was an Ordinary Salesman for Bulldog Electric Ltd

Question 20

Multiple Choice

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% reduction if you place an order today". Legally speaking, will the customer be able to get the reduced price should he sign the contract?


A) No, because James did not have actual authority.
B) Yes, because James had apparent authority.
C) Yes, since trade practice would establish the terms of sale.
D) No, since there had been no past dealings.
E) Yes, because the contract is already in existence.

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