[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.
-Which of the following is the most likely result if Harry sues Malcolm for the price of the jacket?

Question

Quizplus · Accepted Answer

Harry is likely to lose the lawsuit against Malcolm because Malcolm did not take any actions that would lead Harry to reasonably believe that Ashley had the authority to act on his behalf. The incident with the nod of agreement occurred in a different context and with a different party (Rebecca, the wholesale jeweler), and there is no indication that Malcolm made any representations to Harry or took any actions that would imply Ashley had the authority to make purchases on his behalf.

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