Carleton Computer Sales Inc carries on a business of buying and selling computers. Tara is negotiating to sell her computer to Carleton but no agreement has been reached between Tara and Carleton. In anticipation of selling it to Carleton, Tara agreed to leave her computer on a display rack at Carleton's store. Carleton sells Tara's computer to Eli for $1000, telling Eli that Carleton owned the computer. Which of the following best describes Tara's legal position based on the law of agency?
A) Tara has no remedy of any kind.
B) Tara will not be able to get her computer back because Eli reasonably relied on the statement by Carleton that it owned the computer.
C) Tara is entitled to get her computer back because Eli cannot rely on the statement by Carleton that it owned the computer.
D) Tara may not be able to get her computer back because by leaving her computer with a computer dealer on its display rack, she represented to anyone who came into the store, including Eli, that Carleton had authority to sell the computer for her.
E) Tara is entitled to get her computer back because she never gave Carleton authority to sell it to Eli.
Correct Answer:
Verified
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