Final answer:
Butler as an agent has the implied authority to hire and fire employees, enter into contracts, and make financial decisions for Ace's retail business. However, Butler does not have the authority to sell Ace's assets without express permission, which is the correct option that Butler cannot do. Option 4 is the correct answer.
Step-by-step explanation:
In the scenario where Ace has engaged Butler to manage Ace's retail business, Butler possesses implied authority to perform certain actions on behalf of Ace. This implied authority generally extends to tasks that are necessary and customary for managing the business. For instance, Butler would have the implied authority to hire and fire employees as necessary to run the establishment efficiently because staffing is a fundamental aspect of managing a retail business.
Similarly, entering into contracts related to the business is a normal part of operations, and Butler would typically be able to do so in the ordinary course of business. This covers contracts with suppliers, service providers, and other necessary business relationships. Financial decisions, including but not limited to handling day-to-day financial transactions and managing the business' budget, would also fall under Butler's implied authority.
However, the authority does not extend to actions that would fundamentally alter the ownership or structure of the business, such as selling Ace's assets without permission. Disposing of significant assets of the business is typically seen as beyond the scope of implied authority as it can lead to material changes to the business' capital and operations. Such a decision would require express authority from Ace. Therefore, the correct option that Butler does not have the implied authority to do is option 4: Sell Ace's assets without permission.