Futterman operated a cotton factory and employed Dana Marra as a general purchasing agent to travel through the southern states to purchase cotton. Futterman telegraphed Marra instructions from day to day as to the price to be paid for cotton. Marra entered a cotton district in which she had not previously done business and represented that she was purchasing cotton for Futterman. Although directed by Futterman to pay no more than $0.25 per pound, Marra bought cotton from Anderson at $0.30 per pound, which was the prevailing offering price at that time. Futterman refused to take the cotton. Under these circumstances, which of the following is true?
A. The negation of actual authority to make the purchase effectively eliminates any liability for Futterman.
B. Futterman is not liable on the contract.
C. Marra has no potential liability.
D. Futterman is liable on the contract.
Answer: D. Futterman is liable on the contract.
Business
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