Bolt Corp. dismissed Ace as its general sales agent and notified all of Ace's known customers by letter. Young Corp., a retail outlet located outside of Ace's previously assigned sales territory, had never dealt with Ace. Young knew of Ace as a result of various business contacts. After his dismissal, Ace sold Young goods to be delivered by Bolt and received from Young a cash deposit for 20% of the purchase price. It was not unusual for an agent in Ace's previous position to receive cash deposits. In an action by Young against Bolt on the sales contract, Young will

A. Lose because Ace lacked any implied authority to make the contract.
B. Lose because Ace lacked any express authority to make the contract.
C. Win because Bolt's notice was inadequate to terminate Ace's apparent authority.
D. Win because a principal is an insurer of an agent's acts.

Answer: C. Win because Bolt's notice was inadequate to terminate Ace's apparent authority.