iu$.$instructure.com

$10$ PART QUESTION You are the vice$-$president of acquisitions for a medium$-$sized consumer food products company, FOOD, Inc. The company's board of directors has given you authority to negotiate acquisitions of consumer food brands on behalf of FOOD. The board has told you in written and oral instructions that you have the power to acquire any consumer food products brand if the acquisition price is not greater than $$30,000,000,$ which is the authority typically held by most vice presidents of acquisitions for businesses like yours. The board's written instructions also indicate, however, that you have no authority to purchase or negotiate the purchase of a cola drink brand. Others in your position in the consumer food industry typically do have the authority to purchase a cola drink brand for their companies. The board also tells you that the company wants to buy the Ralph's ice cream brand from its owner, Ben Jerry, at a price not greater than $$19,000,000.$ The board is fearful, however, that if Ben Jerry knows FOOD wants to buy the Ben Jerry ice cream brand, Ben Jerry will demand a higher price. Therefore, the board tells you not to disclose to Ben Jerry that you are buying for FOOD, and instead to make it appear that you are buying for your own company. The board suggests you make up a name for your fictitious company. You decide to use the name of Yummy Co $.$

$4$A$.$ If you make a contract in the name of FOOD, Inc. to buy a snack$-$cracker brand for $$13,000,000,$ will FOOD be bound on that contract? $($yes$/$no$)$ Explain the legal theory behind the answer above