When an employee who is not a legal agent of the company agrees to buy something from a salesperson and the item is received and the company pays the invoice,the employee is exercising apparent authority.

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Teddy Nguyen · Accepted Answer

Final Answer : True, Explanation :  Apparent authority is when a third party reasonably believes that an employee has the authority to act on behalf of the company, even if they do not actually have that authority. In this scenario, the employee's actions (agreeing to buy the item) could reasonably be interpreted as within their scope of authority, leading the salesperson to believe that they had the power to make that decision for the company. Therefore, the company may be bound by the agreement and responsible for paying the invoice.

When an employee who is not a legal agent of the company agrees to buy something from a salesperson and the item is received and the company pays the invoice,the employee is exercising apparent authority.

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