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Dart Corp. dismissed Ritz as its general sales agent and hired Parker as its new general sales agent. Parker provided notice to Bing Corp., a
Dart Corp. dismissed Ritz as its general sales agent and hired Parker as its new general sales agent. Parker provided notice to Bing Corp., a retail outlet, that he was taking over as general sales agent and Bing was no longer authorized to make sales for Dart Corp. Ritz subsequently sold Bing Corp. goods to be delivered by Dart Corp. and accepted a standard 20 percent cash deposit for the sale of goods, which is common in the industry.In an action by Bing against Dart on the sales contract, which of the following is true?
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- Bing will lose the lawsuit, because Ritz lacked any express or implied authority to make the contract.
- Bing will lose the lawsuit because Bing was negligent while making a contract with Ritz.
- Bing will win the lawsuit because Dart's notice was inadequate to terminate Ritz's apparent authority.
- Dart will win the lawsuit because Dart's new agent provided notice to Bing that Ritz is no longer Dart's agent.
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