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Fred works for Marios Macarons as a salesperson. Mario, the owner, has given Fred a credit card with Freds name on it to charge necessary

Fred works for Mario’s Macarons as a salesperson. Mario, the owner, has given Fred a credit card with Fred’s name on it to charge necessary business expenses. The credit card does not have the name of the company on it but Mario informed Fred that the bill would come to the company and the company would pay it. Fred uses the credit card to charge more than $1,000.00 in personal expenses unrelated to the business (for example haircut, clothing, car washes). When Mario received the credit card statement, Mario refused to pay for the charges and claimed Fred did not have the authority to make the personal purchases. The merchant/credit card company claims Fred did have the authority to make the purchases. Discuss whether Fred have the authority to make the purchases such that Mario/Mario’s Macarons would be responsible to pay for the charges. BE specific as to the different types of authority; be sure to explore the authority that may have existed as between Mario/Mario’s Macarons and Fred and separately explore the authority that may have existed as between Mario/Mario’s Macarons and the merchant/ credit card company).

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INTRODUCTION The authority to make the purchases and the responsibility for payment depend on the relationship between Fred and Marios Macarons as well as the relationship between Marios Macarons and ... blur-text-image

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