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Jordan Has Been Negotiating to Sell Office Supplies to Softstuff

Question 39

Multiple Choice

Jordan has been negotiating to sell office supplies to Softstuff Ltd, a software developer.He has been dealing with Ira exclusively.Jordan has visited Ira's office at the premises of Softstuff Ltd and noticed the sign on the door that says "Purchasing Manager." Ira has told Jordan that he has authority to enter into the contract.Which of the following is TRUE?


A) Jordan cannot rely on Ira having any authority to bind the corporation because he has no proof that Ira actually has authority to contract on behalf of Softstuff.
B) Jordan cannot rely on Ira having apparent authority because no one in the corporation has represented to him that Jordan has authority.
C) Jordan can rely on Ira having authority because Ira told him he has authority.
D) Jordan can rely on Ira having apparent authority because the corporation has made a representation that Ira has the usual authority of a purchasing manager by allowing him to use an office indicating that he has that title.
E) Jordan cannot rely on Ira having apparent authority because Ira might not actually have authority to contract on behalf of the corporation.

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