Question: Abe is a sales agent for Pluto. Although it is customary in the trade for sales agents to warrant the quality of the goods they
Abe is a sales agent for Pluto. Although it is customary in the trade for sales agents to warrant the quality of the goods they sell, Pluto specifically told Abe not to make any warranties on the goods he sells. In addition, Pluto wrote each of his customers to inform each of the policy. About one month later, Abe made a forbidden warranty in order to make a sale to Thomas. Thomas was an established customer who knew that Abe was acting on Pluto's behalf and who also had been informed of Pluto's warranty policy, but who honestly forgot about the policy while dealing with Abe and thus thought that Abe had authority to make the warranty. Is Pluto contractually liable to Thomas here? Is Abe liable to Thomas? Would it make any difference if Pluto had simply published a notice in a newspaper rather than notifying each customer directly? Discuss fully.
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