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Jackson Is the Shipping Clerk for Coldpoint Inc,an Appliance Manufacturer

Question 71

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Jackson is the shipping clerk for Coldpoint Inc,an appliance manufacturer.For five years,Jackson has regularly taken orders from Knight's TV and Appliances Inc for refrigerators.Jackson does not approve the orders himself.He submits them to the sales manager.Once the sales manager has approved the order,an invoice specifying the price and terms of payment is issued and signed by the sales manager.Each invoice is then sent to Knight's.A contract is formed on the terms of the invoice.Jackson then arranges for Coldpoint to ship the refrigerators.In October,Knight's gets an invoice in response to its order for two refrigerators that is signed by Jackson.Knight's calls Jackson and asks about this change in procedure.Jackson says that he has been promoted and he can now approve and sign invoices.Knight's accepts this explanation.In fact,Jackson has not been promoted and invoices still require approval by the sales manager.Can Knight's rely on the invoices a forming a contract for the two refrigerators enforceable by Knight's against Coldpoint?

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Jackson has no actual authority to commi...

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