Concession Sales,Inc. ,employs Darla as a sales agent.Concession gives Darla a furnished office and an expense account.Entertainment Stadium Corporation (ESC)orders supplies from Darla,who fills the order with goods from Food4U Company.The goods are defective.ESC may recover damages from Concession on the ground of

Question

Quizplus · Accepted Answer

Apparent authority refers to the power that appears to be granted to an agent but is not explicitly authorized by the principal. In this case, ESC may reasonably assume that Darla has the authority to order supplies on behalf of Concession, and therefore Concession may be held liable for the defective goods supplied by Food4U Company. This is an example of apparent authority.