Question: Wendy has worked as a purchasing agent for the Blue Lobster seafood restaurant chain for two years. In this capacity she buys seafood for the
Wendy has worked as a purchasing agent for the Blue Lobster seafood restaurant chain for two years. In this capacity she buys seafood for the restaurant chain from many independent fisherman. Blue Lobster discovers that Wendy has been inflating the mileage and expenses she turns for compensation. Because of this Blue Lobster fires Wendy. Later in the month, Wendy visits one of her former suppliers, Shrimper Dan, and buys 50 cases of shrimp from him at $100 a case. As she has in the past, Wendy tells Shrimper Dan to send the bill for the shrimp to Blue Lobster. Wendy then takes the shrimp, resells them for $2500 and leaves town. When Shrimper Dan presents the bill to Blue Lobster, Blue Lobster refuses to pay. Which of the following is true?
A. Blue Lobster has no liability for the shrimp contract because Wendy was acting outside the scope of her authority.
B. Blue Lobster is not liable under the shrimp contract because Wendt failed to identify her principle.
C. Blue Lobster is liable under the shrimp contract because Wendy was acting with apparent authority.
D. Blue Lobster is liable under the shrimp contract because it benefited from the contract.
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