Ames, an agent for Baker Antiques, had authority to purchase American furniture costing a maximum of $1500 per piece. A French desk for $3000 from Carter. Baker was furious when s Ames. Nevertheless, she put the desk on display in the shop w When the best offer, she got on the desk was $2500, Baker re Baker told Carter that Ames had exceeded his authority in pur- demanded that Carter refund the $3000 that Ames had paid fo

Business Its Legal Ethical & Global Environment
10th Edition
ISBN:9781305224414
Author:JENNINGS
Publisher:JENNINGS
Chapter13: Contracts And Sales:performance And Remedies
Section: Chapter Questions
Problem 5QAP
icon
Related questions
Question
Ames, an agent for Baker Antiques, had authority to purchase early 20th -century
, American furniture costing a maximum of $1500 per piece. Ames bought a 19th-century
French desk for $3000 from Carter. Baker was furious when she saw the desk, and fired
Ames. Nevertheless, she put the desk on display in the shop with a $5000 price tag.
When the best offer, she got on the desk was $2500, Baker returned the desk to Carter.
Baker told Carter that Ames had exceeded his authority in purchasing the desk, and she
demanded that Carter refund the $3000 that Ames had paid for the desk.
Will Carter have to refund the money? Explain why or why not.
Was Ames wrongfully discharged? Explain why or why not.
Transcribed Image Text:Ames, an agent for Baker Antiques, had authority to purchase early 20th -century , American furniture costing a maximum of $1500 per piece. Ames bought a 19th-century French desk for $3000 from Carter. Baker was furious when she saw the desk, and fired Ames. Nevertheless, she put the desk on display in the shop with a $5000 price tag. When the best offer, she got on the desk was $2500, Baker returned the desk to Carter. Baker told Carter that Ames had exceeded his authority in purchasing the desk, and she demanded that Carter refund the $3000 that Ames had paid for the desk. Will Carter have to refund the money? Explain why or why not. Was Ames wrongfully discharged? Explain why or why not.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Business Its Legal Ethical & Global Environment
Business Its Legal Ethical & Global Environment
Accounting
ISBN:
9781305224414
Author:
JENNINGS
Publisher:
Cengage