Asked by Alexandra Rosen on May 09, 2024
Verified
Edward is hired to manage Fred's business. Which of the following is untrue regarding Edward's authority?
A) Edward has authority to sell a used cash register when he buys a new computerized checkout system for the store.
B) Edward has authority to send bills to customers and to accept payments on behalf of Fred.
C) Edward can hire employees, but he cannot fire them without Fred's consent.
D) Edward can enter into contract with wholesalers for merchandise in the store.
Authority to Sell
The legal power granted, usually to an agent, to transfer the ownership of property from the seller to the buyer.
Computerized Checkout
A system used in retail stores for completing sales transactions electronically, typically involving scanning items and automatic calculation of total price.
Contract with Wholesalers
An agreement between a producer and entities that buy products in bulk, intending to distribute them further.
- Discriminate amongst express, actual, and implied authorizations of an agent.
Verified Answer
Learning Objectives
- Discriminate amongst express, actual, and implied authorizations of an agent.
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