North, Inc., hired Sutter as a purchasing agent. North gave Sutter written authorization to purchase, without limit, electronic appliances. Later, Sutter was told not to purchase more than 300 of each appliance. Sutter contracted with Orr Corp. to purchase 500 tape recorders. Orr had been shown Sutter's written authorization. Which of the following statements is true?
A. Sutter will be liable to Orr because Sutter's actual authority was exceeded.
B. Sutter will not be liable to reimburse North if North is liable to Orr.
C. North will be liable to Orr because of Sutter's actual and apparent authority.
D. North will not be liable to Orr because Sutter's actual authority was exceeded.
Answer: C. North will be liable to Orr because of Sutter's actual and apparent authority.
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