1. Andrea was hired as the purchasing manager of Publics, which operated a chain of supermarkets in the New York metropolitan area. Paula, the president of Publics, specifically told Andrea never to purchase beer on behalf of Publics because the chairman of Publics had strong moral objections to the sale of alcoholic beverages. Despite this instruction, three days after she was hired, Andrea entered into a written contract for $500,000 worth of beer with Terminals, a distributor who regularly sold beer to other supermarket chains in the area. Andrea did so because the price was an excellent one and she believed the purchase would result in significant profits for the Public. 
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3. Terminals had sold large quantities of soda to the Public over the preceding two years. Terminals had not sold beer to Publics before but did not know that Andrea had been specifically prohibited from buying beer. When Paula learned of the order, she promptly notified Terminals that she was repudiating the order and refused to accept delivery. 
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5. (a) In an action by Terminals against Publics to enforce the contract, what arguments might be made by each party? To whom would you award judgment? Why? 
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7. (b) If Publics is liable to Terminals, what rights does it have against Andrea? Explain.