Toby is buying a new car from a dealership.She is trying to negotiate the price with the salesperson,but the salesperson says he doesn't have authority to change the price.He offers to get a manager,who will be able to give Toby a discount if it is possible.The salesperson,wanting not to lose commission,asks another salesperson to come over just to tell Toby there's nothing that can be done to the price.However,the second salesperson ends up giving Toby 20% off the sticker price.Which of the following is most likely true?
A) The dealership must ratify the contract for it to be enforceable.
B) Neither salesperson had actual or apparent authority,so the dealership isn't bound to the price.
C) The second dealer had apparent authority and therefore the contract is binding.
D) The second dealer had actual authority and therefore the contract is binding.
E) If the dealership had a policy to only give a maximum discount of only 10% then the contract isn't binding because the second dealer acted outside of his authority.
Correct Answer:
Verified
Q48: Sharona entered into a contract with Deepak.Under
Q49: Agents have a fiduciary duty to their
Q50: Anton has entered into a contract with
Q51: The concept of "apparent authority" is also
Q52: For many years, Street Sounds Inc, a
Q54: Artemis has entered into a contract with
Q54: Minnie and Maximum Realty Inc have entered
Q56: Upper Cuff is a men's clothing store.Upper
Q57: Hadi wants to buy a car,but he
Q60: Which of the following business arrangements might
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents