Question: Mathews is an agent for Sears with the express authority to solicit orders from customers in a geographic area assigned by Sears. Mathews has no

Mathews is an agent for Sears with the express authority to solicit orders from customers in a geographic area assigned by Sears. Mathews has no authority to grant discounts or to collect payment on orders solicited. Mathews secured an order from Davidson for 1

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10 900 and, thereafter, Mathews turned in both the check and the order to Sears. The order clearly indicated that a 10% discount had been given by Mathews. Sears shipped the order and cashed the check. Later, Sears attempted to collect $100 as the balance owed on the order from Davidson. Which of the following is correct?

a. Sears can collect the $100 from Davidson because Mathews contracted outside the scope of his express or implied authority.

b. Sears cannot collect the $100 from Davidson because Mathews, as an agent with express authority to solicit orders, had implied authority to give discounts and collect.

c. Sears cannot collect the $100 from Davidson as Sears has ratified the discount granted and made to Mathews.

d. Sears cannot collect the $100 from Davidson because, although Mathews had no express or implied authority to grant a discount and collect, Mathews had apparent authority to do so.

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