Question

The owner of oasis store regularly sends miguel, one of his employees, to act on behalf of the store and obtain goods from polar inc., a local retail outlet. a few months later the store owner terminates miguel, but fails to notify polar inc. about the termination. miguel buys goods from polar, and polar charges oasis for the purchases made. this liability is a result of ______.

Answer 1

A. Apparent authority

Step-by-step explanation:

The liability is as a result of apparent authority.

Apparent authority is the power of an individual or firm to act on behalf of another Individual or firm.

It is used in agency law to refer to a situation in which the principal indicates to a third party that an agent will acts on their behalf.

Oasis store has apparently authorized his employee Miguel to purchase goods from polar inc. on their behalf and when Miguel's appointment was terminated, he could still order goods from polar inc. because polar inc. wasn't aware of the termination of appointment but the apparent authority to make orders for them on behalf of Oasis store.

Answer 2

A. Apparent authority

Step-by-step explanation:

Apparent authority is the power an agent acquires in order for the agent to act supposedly in the best interest of his or her principal. It usually occurs like in this case, when a third party (polar inc) believes a person (Miguel) has the authority to act on behalf or engage in business transaction for another person (owner of oasis store). However, before it can be considered apparent authority, the third party must have a reasonable factor to have inferred that the person had the authority to carry out the transaction. In this case, Miguel was the one that did it in the past, so Polar inc didn't see how he was not supposed to be the one having not been given notice of miguel status.