A representative’s apparent authority is assessed by whether or not their acts and words would reasonably give another person the impression that they are acting on behalf of the firm (Brewster, 2019). In this case, Dr. Mavis Brown was the head of Human Resources and made an offer of employment to Mary. By doing so, she may have created the impression that she had the authority to make such an offer. However, the requirement for approval by the management committee suggests that the final decision for employment was not solely within Dr. Brown’s authority. Whether or not Dr. Brown had apparent authority to bind the corporation depends on the specific circumstances and the actions of both Dr. Brown and the corporation. In this case, it’s clear whether Dr. Brown had the apparent authority to bind the corporation without the endorsement of the management committee.
Opportunity Corporation’s hiring policy states that the management committee must consent before a new employee starts work. In her letter to Mary, Dr. Mavis Brown said that the company’s management committee needed to ratify Mary’s appointment before it could go into effect. Mary continued working under the assumption that the management committee’s endorsement of her appointment was only a formality and that she had already been granted the role. Mary accepted the opportunity, resigned from her previous work, and sold her home. After many days of discussion, the management committee concluded that Mary’s employment needed to be approved and rescinded the offer. Dr. Mavis Brown said she could legally bind the company in this instance. She accurately described the internal process of Opportunity Corporation, which called for the employment of Mary to be authorized by the management committee, as she said in her letter. Additionally, Mary had no grounds for believing the management committee would reject her employment application. Hence, it is likely that Dr. Mavis Brown had the power to tie the company.
References
Brewster, C. (2019). European perspectives on human resource management. Human Resource Management Review, 14(4), 365–382. https://doi.org/10.1016/j.hrmr.2004.10.001
