Ho is a Vice President of purchasing for Textiles Inc. (TI). He was authorized to purchase all necessary textile inputs (i.e., cotton, polyester, etc.) to make TI's textile rolls which would then be sold to manufacturers who use the material to make end products such as bedding and clothing. Ho was terminated without notice last week, and the same day he was terminated (but after being terminated), he made two major orders of textile products that TI does not need, each in excess of $200,000, from longstanding purchasers. Ho had dealt with both suppliers and had made purchases of similar value (even if not quite as much) in the past.

Explain whether you think that TI will be responsible for these contracts and why (or why not). Finally, explain what TI could have done differently (legally) to better protect itself on this matter.