Question

Sale by Mercantile agent is not valid when _________.

• A. the buyer is acting in ordinary course of business
• B. the buyer knows that the agent has no authority to sell
• C. the buyer must act in good faith
• D. the possession of the goods must be with the consent of the owner

Answer 1

The correct option is B the buyer knows that the agent has no authority to sell

Sale by Mercantile agent is not valid when the buyer knows that the agent has no authority to sell. Merchantile agent refers to that event when the seller sells goods wihout any authority.