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Ms. Maddock frequently sent her maid, Ellen, to the neighborhood drugstore to purchase various items for her and to have them charged to the Maddock’s account. Ms. Maddock paid the charges each month without question. Suppose in addition to purchasing items for Ms. Maddock, Ellen begins including items for herself without Ms. Maddock’s consent. A few months later, Ms. Maddock discovers the unauthorized purchases. Discuss any obligations Ms. Maddock has related to the unauthorized purchases. If Ellen is fired and continues to make purchases charging them to the Maddock’s account, what obligation does Ms. Maddock’s have to pay the new charges?

Operation Management, Management Studies

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