Decides to place order for more sugar from one of suppliers

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Reference no: EM132188977

You are the owner of a chocolate factory. One of your workers takes the initiative and decides to place an order for more sugar from one of your suppliers while you are out of town. Since the sugar was necessary for keeping operations going while you were gone, you happily pay the supplier for the order when you get back in town. This same employee starts to place new orders for sugar anytime supplies are low, and even though you never gave him formal permission to do this you keep paying the supplier. However, one day you decide that the price the supplier is paying is too high and you refuse to pay on the grounds that your employee was not authorized to place the order. Do you think you would be liable for this payment or not based on the concepts of agency law?

Reference no: EM132188977

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