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[High Maintenance] Malcolm, Who Runs a Retail Jewelry Store, Went

Question 55

Multiple Choice

[High Maintenance] Malcolm, who runs a retail jewelry store, went to a wholesale jewelry store with Ashley, to whom he was engaged to be married. Malcolm had no express, written agreement with Ashley by which she was his agent. The wholesaler jeweler, Rebecca, asked Malcolm if Ashley was buying for him. Malcolm did not want to embarrass Ashley so he nodded in agreement. A few minutes later Malcolm whispered to Ashley, outside the hearing of the wholesaler, that she should not make any purchases. Malcolm and Ashley had a big disagreement over money that evening, and Ashley broke off their engagement. The next day Ashley went back to the wholesale jeweler and purchased a string of pearls for $2,000. Ashley also purchased a fur jacket for $3,000 from a store next door to the jewelry store owned by Harry. She told Harry that Malcolm wanted a fur jacket for a model in his store and that Malcolm would be glad to pay Harry for the jacket.
-If Rebecca, the wholesaler jeweler, sues Malcolm for the price of the pearls, which of the following is the most likely result?


A) Rebecca will win assuming that she can prove that she reasonably believed, based on Malcolm's conduct that Ashley was acting as his agent.
B) Rebecca will lose because it was her responsibility to ask Malcolm for written documentation that Ashley was his agent.
C) Rebecca will lose unless it can be established that Ashley at some time in the past had actual authority to act as Malcolm's agent.
D) Rebecca will win only if she can show that through reasonable investigative efforts on her part Ashley cannot be located.
E) Rebecca will win only if she can show that Ashley has no assets with which to pay for the necklace.

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