Ringo Is a Welder at a Manufacturing Facility

Ringo is a welder at a manufacturing facility.His main function at the organization is to perform welding related tasks.His job does not entail purchasing,and he rarely interacts with anyone outside of the organization.While at the grocery store,he runs into George,a salesman from a welding supply company.George tells Ringo that he will sell the company welding supplies at a significant discount if he can sign an exclusive contract immediately.Ringo thinks it looks like a good deal,so he signs his company up for the terrific bargain. Ringo tells his boss,Paul,about the deal.Paul is initially upset,but after review of the contract he decides to accept shipment of the supplies for the next few months.After a few months have passed,John,a salesman from a competing welding supply company offers an even better deal to Paul.Paul wants to get out of the contract with George.He's thinking of telling George that the initial contract wasn't valid because Ringo did not have authority to sign on behalf of the company.What is the most likely result?

A) The company will not be liable because Ringo had no authority by virtue of his position.
B) The company will not be liable because Ringo did not have authority to sign the contract,and ratification did not occur.
C) The company will be liable because Ringo is an authorized to bind the company by virtue of his position.
D) The company will be liable. Ringo is not authorized,but the actions of Paul constitute ratification.

Correct Answer:

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