Mrs. Terry sees a cashmere sweater she likes in Peters Department Store but notices that it is slightly soiled. Alice, the sales clerk, agrees to mark it down from $55 to $40, which she has no authority to do. Mrs. Terry consents, asks that the sweater be delivered, and promises to pay cash on delivery. The manager of Peters sees the item being wrapped, corrects the bill, and sends it out to Mrs. Terry. On seeing her sweater accompanied by a bill for $55, Mrs. Terry calls and is told by Peters that Alice had no authority to knock down the price and that she should either pay the bill or return the sweater. What legal arguments will each side make? What is the likely outcome of this case and why?