Mathews is an agent for Sears with the express authority to solicit orders from customers in a geographic area assigned by Sears. Mathews has no authority to grant discounts or to collect payment on orders solicited. Mathews secured an order from Davidson for $1,000 less a 10% discount if Davidson makes immediate payment. Davidson had previously done business with Sears through Mathews but this was the first time that a discount-payment offer had been made. Davidson gave Mathews a check for $900 and, thereafter, Mathews turned in both the check and the order to Sears. The order clearly indicated that a 10% discount had been given by Mathews. Sears shipped the order and cashed the check. Later, Sears attempted to collect $100 as the balance owed on the order from Davidson. Which of the following is correct?
- Sears can collect the $100 from Davidson because Mathews contracted outside the scope of his express or implied authority.
- Sears cannot collect the $100 from Davidson because Mathews, as an agent with express authority to solicit orders, had implied authority to give discounts and collect.
- Sears cannot collect the $100 from Davidson as Sears has ratified the discount granted and made to Mathews.
- Sears cannot collect the $100 from Davidson because, although Mathews had no express or implied authority to grant a discount and collect, Mathews had apparent authority to do so.