15. Borg is the vice-president of purchasing for Crater Corp.He has authority to enter into purchase contracts on behalf of Crater provided that the price under a contract does not exceed $2 million.Dent, who is the president of Crater, is required to approve any contract that exceeds $2 million.Borg entered into a $2.5 million purchase contract with Shady Corp. without Dent's approval.Shady knew that Borg was vice-president for purchasing for Crater Corp. but was unaware that Borg exceeded his authority.Note that transactions of $2.5 million or more are very common in this industry and a reasonable person in Shadys position would believe that a vice-president for purchasing would have such authority.What is the most likely result of this transaction?

Select one:

a. Crater will be bound because of Borg's apparent authority.

b. Crater will not be bound because Borg exceeded his authority.

c. Crater will only be bound up to $2 million, the amount of Borg's authority.

d. Crater will be bound because of Borg's express authority.

e. Crater will be bound because of Borg's implied authority.