Toby Is Buying a New Car from a Dealership

Multiple Choice

Toby is buying a new car from a dealership.She is trying to negotiate the price with the salesperson,but the salesperson says he doesn't have authority to change the price.He offers to get a manager,who will be able to give Toby a discount if it is possible.The salesperson,wanting not to lose commission,asks another salesperson to come over just to tell Toby there's nothing that can be done to the price.However,the second salesperson ends up giving Toby 20% off the sticker price.Which of the following is most likely true?

A) The dealership must ratify the contract for it to be enforceable.
B) Neither salesperson had actual or apparent authority,so the dealership isn't bound to the price.
C) The second dealer had apparent authority and therefore the contract is binding.
D) The second dealer had actual authority and therefore the contract is binding.
E) If the dealership had a policy to only give a maximum discount of only 10% then the contract isn't binding because the second dealer acted outside of his authority.