Next Generation Bar Exam Quiz
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BUSINESS ASSOCIATIONS AND RELATIONSHIPS
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Thornton ran a used-car dealership and employed Vance as sales manager. Vance had actual authority to sell the dealership's cars, but Thornton privately instructed Vance that discounts exceeding $1,000 required Thornton's prior approval. For more than two years, Vance regularly discounted cars by as much as $1,500 without seeking approval; Thornton, though aware, never objected. This month, Vance sold a car listed at $18,000 to Calloway, a first-time customer, for $16,600. Vance did not mention the discount limit,and Calloway did not know of Thornton's instruction.
Is Thornton bound to the sale?
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