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Melissa was authorised by her boss to place weekly stationery orders

for up to $250. For four consecutive weeks she ordered $400 worth of supplies from Lewis Stationers because they were offering customers who spent $1600 in one month a free A4 paper folding machine and she knew her office needed one. Melissa's boss has foundout and told Lewis Stationers they have to take back their machine and any supplies exceeding the value of $250. Answer the following questions, giving reasons. (a) Did Melissa have express, implied or apparent authority to place the order? (b) Is Melissa's company legally obliged to purchase the excess stationery (c) Could Melissa be made liable for the cost of the excess stationery?

Step-by-step answer

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Subject: Accounting, Business

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