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| Sly was a general agent of the Cute Cosmetics Company with authority to sell, make collections, and adjust disputes. Sly was caught padding his monthly expense account by substantial amounts and was dismissed. Cute hired another general agent, Ready, to replace Sly. Ready was slowly but steadily calling upon Sly’s accounts to make sales and was informing them that Sly’s services had been terminated. Cute also published a notice in the appropriate trade journals and the local newspaper announcing the replacement of Sly with Ready. Sly, after he was let go, called on all the customers who had outstanding accounts payable and quickly made whatever collections he could in cash and absconded. Which of the following statements is correct regarding Cute’s legal right against the customers? A. Cute will have to absorb the loss unless Cute can prove the customers had actual notice of Sly’s dismissal. B. Cute can regain possession of the goods since title did not pass because Sly’s actions constituted a fraud. C. Cute can obtain payment from the customers despite Sly’s wrongful acts since it had published a notice of Sly’s dismissal. D. Cute will have to absorb the loss since Sly had continuing implied authority to make collections. |