Pete tells Alice, his sales agent, that under no circumstances does she have authority to make any warranties covering goods she sells for Pete.

Pete tells Alice, his sales agent, that under no circumstances does she have authority to make any warranties covering goods she sells for Pete. No third party knows about Pete’s limitation on Alice’s authority. Alice goes out and provides warranties in a sale to Tom. The warranties that Alice makes are customary in the trade, Tom knows this, and Tom knows nothing about the limitation on Alice’s authority.

1. Did Alice have implied authority to bind Pete? Discuss

2. Discuss Alice’s apparent authority? Discuss.

Requirements: 1-2 paragraphs