Brown now seeks to recover the purchase price of the set from Green. Will Brown prevail? Explain.
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Green Grocery Company employed Jones as its manager. Jones was given authority by Green to purchase supplies and goods for resale and had conducted business for several years with Brown Distributing Company. Although her purchases previously had been limited to groceries, Jones contacted Brown and had it deliver a television set to her house, informing Brown the set was to be used in promotional advertising to increase Green’s business. The advertising did not develop, and Jones disappeared from the area, taking the television set with her. Brown now seeks to recover the purchase price of the set from Green. Will Brown prevail? Explain. |
Explanation
Organization G had given actual implied authority to Individual J, which means that Individual J had the right to make purchases for office use only. As Individual J had been purchasing office goods from Organization B for years, the sudden change in the nature of goods purchased, that is, the purchase of the television set, should not be allowed by Organization B. It is the responsibility of Organization B to prove that Individual J had the right to do so. Organization B cannot recover the price of the television from Organization G until this is proved.
Verified Answer
Organization B will not prevail as only Individual J had the authority to make purchases within the scope of business. Delivering a television set to the house of Individual J is outside the scope of business, which Organization B failed to understand.
