Question

Charlena gives Megan the post of Vice-President of Procurement to express appreciation for Megan's hard work in stocking the shelves at Charlena's store, Thrift City. Megan uses her business card with the title on it to purchase a new truck in Thrift City's name from Highway Auto. What authority, if any, has Charlena given Megan?

Answer 1

Answer:

Apparent Authority

Explanation:

Based on the information provided within the question it seems that the authority that Charlene has given Megan is Apparent Authority. This term refers to a subtle authority given to an individual which a reasonable third party would understand that they are an agent acting on behalf of their employer. Such an example would be an employee driving a UPS truck, any reasonable person would see the UPS truck as a sign that the individual driving has authority to act on behalf of the UPS company. The UPS truck is similar to the business card that Megan has, giving her apparent authority to act on behalf of Thrift City.

Answer 2

Answer:

termed "apparent authority"

Explanation:

The three kinds of authority recognized in the law are:

1. actual authority (whether express or implied),

2. apparent authority, and

3. ratified authority.

However in this scenario Charlena gives or confers authority to Megan which represents a situation where a reasonable third party would understand that an agent had authority to act from the principal.

The principal here represents Charlena,

the agent is Megan,

and the third party is 'Highway Auto'

This means a principal is bound by the agent's actions (since Megan is authorised to use her business card to purchase in Thrift City's name).