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Business Law: Text and Cases 15th Edition

Business Law: Text and Cases (15th Edition)

Book Edition15th Edition
Author(s)Clarkson, Miller
Section 33-1: Scope of Agent's Authority
Section 33-3: Liability for Torts and Crimes
Critical Thinking
Legal Reasoning Questions
Section 33-4: Termination of an Agency
Chapter 33, End of Chapter, Business Scenarios and Case Problems, Exercise 33-1
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Unauthorized Acts.


Janell Arden is a purchasing agent-employee for the A&B Coal Supply partnership. Arden has authority to purchase the coal needed by A&B to satisfy the needs of its customers. While Arden is leaving a coal mine from which she has just purchased a large quantity of coal, her car breaks down. She walks into a small roadside grocery store for help. While there, she encounters Will Wilson, who owns 360 acres back in the mountains with all mineral rights. Wilson, in need of cash, offers to sell Arden the property for $1,500 per acre. On inspection of the property, Arden forms the opinion that the subsurface contains valuable coal deposits. Arden contracts to purchase the property for A&B Coal Supply, signing the contract "A&B Coal Supply, Janell Arden, agent." The closing date is August 1. Arden takes the contract to the partnership. The managing partner is furious, as A&B is not in the property business. Later, just before closing, both Wilson and the partnership learn that the value of the land is at least $15,000 per acre. Discuss the rights of A&B and Wilson concerning the land contract. (See Liability for Contracts.)


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