Jeffrey works at a retail shop in a nice resort. The owner told him the because of the upscale stock, he was never to discount any of the merchandise. A customer noted that a small tea set which she wanted to buy was missing a spoon, and asked if Jeffrey could reduce the price, which he did by twenty percent. Which of the following statements is FALSE?
A) Jeffrey violated his duty to obey instructions and the owner could terminate Jeffrey.
B) The owner could require Jeffrey to compensate the shop for the difference in the retail and discounted price.
C) Jeffrey had the authority to make the sale at the price he set and the owner may not seek any remedy.
D) The contract for the sale of the teas set is valid even though Jeffrey did not have actual authority to give the discount.
Correct Answer:
Verified
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