Reference no: EM13229781

The University of North is the major state university. The University was preparing for its upcoming re-accreditation, so the University board set aside extra funds to make sure that the professors could travel for research purposes. To simplify paying for these expenses, University officials decided to give each professor a credit card specifically for research travel. Professor Alan had terrible credit and was overjoyed to have a credit card. He used the card to travel to several places to present his research. He also used the card to buy his family gifts every time he went to a different place. Professor Alan reasoned that the University would not know the difference, but he was wrong. The accounting department tracked the purchases and told Professor Alan that he had to pay for the personal purchases. Professor Alan assured that he would do so, but he never did. The credit card company contacted the University many times to collect the unpaid debt. The University refused to pay the card charges on the grounds they were unauthorized. Is the University correct? Discuss why or why not.