Business Organizations and Agency in a Commercial Contract

MODULE III

Introduction…

There is no more important concept than understanding a manager’s role in an organization and his or her authority, as well as the role and authority of others in an organization. Take a moment and try to answer the following questions:

1. A is an agent for ZYZ Company, A is a janitor, can A bind ZYZ to a contract?
2. Does your answer change if the contract is for cleaning supplies? Why or why not?
3. If A of BRD INC. seeks to sell $1000 worth of BRD INC’s product, what might happen if Amy Gill of Putin Louse Ltd. enters in to a contract but does not inquire past a general business card held by A that reads, “A. BRD INC. employee”?

We will review answers from Module I, II, and III next week, as well as have a practice exam to look toward a mid-term a few weeks away.

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