Todd Taylor was the owner of a hotel under construction in Oregon. During the construction, Taylor became concerned about possible rusting in the exterior stucco system manufactured by ChemRex that was being installed at the hotel. The general contractor, Ramsay-Gerding, arranged a meeting with Taylor, the installer, and the ChemRex territory manager for Oregon, Mike McDonald. McDonald stated at the meeting that the stucco system being installed was "bulletproof against rust" and stated that "you're going to get a five-year warranty."

McDonald followed up with a letter confirming the five-year warranty on parts and labor. A year later, rust and discoloration appeared on the stucco on Taylor's hotel. He contacted ChemRex but they would not fix the problem. Taylor sued ChemRex for breach of warranty. ChemRex claimed there was no warranty because McDonald did not have actual or apparent authority to declare such a warranty.

Who wins?