Question

Ahmed hired Shlomo to act as his sales agent in his jewelry store. Ahmed authorized Shlomo actual express authority to sell items of jewelry up to $1,000 without checking with him; however, if the price was over $1,000, Shlomo was to check with Ahmed before making a sale. One day, a customer wanted to buy a necklace for $1,500 and Shlomo sold it to her without first checking with Ahmed. When Ahmed learned of this, he was upset because the price was a mistake; it should have been marked at $3,000. Ahmed wants the customer to return the necklace. Is the customer required to return the necklace in this case?

A. Yes, because Shlomo did not have express authority to sell that item.

B. Yes, because Shlomo did not have implied authority to sell that item.

C. No, because Shlomo did have apparent authority to sell that item.

D. No, because Shlomo did have implied authority to sell that item.

Answer

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