Business Law

Albert Arillotta, acting for Interstate Demolition and Environmental Corp. (IDEC), sent an email to CSX Transportation, a railroad company , stating an interest in buying rail cars as scrap. Arillotta represented himself to be "from interstate demolition and recovery express". The email address from which Arillotta sent this inquiry was "albert@recoveryexpress.com". The domain name of the email address was assigned to Recovery Express, Inc. Arillotta didn't work for Recovery Express, but he was allowed to use its offices and e-mail because he had been involved in another venture with it. CSX agreed to sell rail cars to IDEC, and they were delivered to the location specified by Arillotta. Neither Arillotta or IDEC paid for the rail cars. CSX sued Recovery Express to recover the price of the rail cars. Did the court hold Recovery Express liable to CSX on the ground that Arillotta had apparent authority to transact for Recovery Express?