Question

Mark was a new salesperson in an electronics store. He sold a TV to a customer and accidentally gave a 35% discount. His manager told him to be careful next time, but did not contact the customer to correct the sale. Then next day, a friend of the original customer came in and wanted to buy the same TV with the same 35% discount.

Should the second customer be allowed to receive the same discount?

Answer 1

Answer: Yes

Explanation:

The second customer should be allowed the same discount due to the precedent set by the introduction of an agency by ratification.

An Agency by ratification refers to when a principal ratifies the actions of an agent that acted without permission. The principal would then become bound to the action that was performed.

Mark was the agent and when the manager(principal) did not contact the customer to correct the sale, the manager ratified the actions of Mark and so is bound to the discount which means it should be extended to the customer's friend as well.