10. YOU BE THE JUDGE WRITING PROBLEM Sara Kearns went to an auction at Christie's to...

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10. YOU BE THE JUDGE WRITING PROBLEM Sara Kearns went to an auction at Christie's to bid on a tapestry for her employer, Nardin Fine Arts Gallery. The good news is that she purchased a Dufy tapestry for $77,000. The bad news is that it was not the one her employer had told her to buy. In the excitement of the auction, she forgot her instructions. Nardin refused to pay, and Christie's filed suit. Is Nardin liable for the unauthorized act of its agent? Argument for Christie's: Kearns executed a bidder form as agent for Nardin. This is a common practice for many purchasers. Christie's cannot possibly ascertain in each case the exact nature of the bidder's authority. Whether or not Kearns had actual authority, she certainly had apparent authority and Nardin is liable. Argument for Nardin: Kearns was not authorized to purchase the Dufy tapestry, and therefore Christie's must recover from her, not Nardin.