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Legal and Ethics (Common Law and the Purchase of Services (Origins of…

- - - - Express authority includes the acts that the agent is expressly and directly authorized to perform.
      - Implied authority is all other authority that is necessary, usual, and proper to carry through to completion the express authority conferred. The extent of the agent’s implied authority is determined from the nature of the business to be transacted. Implied authority is broad in the case of a general agent or manager.
      - Third-party role. It is the duty of the third party (e.g., a supplier’s representative) to ascertain the scope of an agent’s authority. The supplier cannot only rely on statements of the agent about the extent of his or her powers
    - - This appearance of authority is created when the words or actions of the principal (employer) lead a reasonable person to believe that authority has been granted
    - - People within an organization who spend company money on the basis of apparent au- thority are commonly referred to as maverick buyers. They typically buy off contract or circumvent the purchasing policy and procedures to make their own buying decisions