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Amy is a salesperson for ABC Company.  Although ABC never expressly authorized her to collect payments (cash and checks) from the customers, she routinely does so for some of her long standing customers and submits them to ABC, who accepted payment without issue. One day, Amy collects cash from one of her customers and runs off.  The customer sues ABC Company.  If ABC is liable, it is because Amy has     a.     apparent authority     b.     implied authority     c.     no authority     d.     express authority

Amy is a salesperson for ABC Company.  Although ABC never expressly authorized her to collect payments (cash and checks) from the customers, she routinely does so for some of her long standing customers and submits them to ABC, who accepted payment without issue. One day, Amy collects cash from one of her customers and runs off.  The customer sues ABC Company.  If ABC is liable, it is because Amy has     a.     apparent authority     b.     implied authority     c.     no authority     d.     express authority

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Amy is a salesperson for ABC Company.  Although ABC never expressly authorized her to collect payments (cash and checks) from the customers, she routinely does so for some of her long standing customers and submits them to ABC, who accepted payment without issue. One day, Amy collects cash from one of her customers and runs off.  The customer sues ABC Company.  If ABC is liable, it is because Amy has
    a.    
apparent authority

    b.    
implied authority

    c.    
no authority

    d.    
express authority

 

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