Please help me answer this case study. What law apply to it and and why --- this

Question

Please help me answer this case study. What law apply to it and and why --- this is from the book business law with UCC APP 14th ed (I cannot find the right subject under business and this is the best option I could find)

Facts:

On April 11, Fred Chapman discharged Anna Savant, the manger of his store, the Super Electronic Supply Outlet. On April 12, Chapman called The Barnard Crossings Chronicle and had a notice printed to the effect that Savant ordered 12 electronic games, two computers, two lase printer, a fix machine, and a car stereo from the Global Electronic Components Corporation. As she had frequently done in the past while acting as manger for Super, she told George Pierce, the owner of Global, to send the bill to Super. Pierce did so. Savant then kept these items for herself. Pierce did not have actual notice of Savant’s discharge until April 28, when he saw the notice as he was throwing out some old newspaper. Savant could not be located, so Pierce brought suit against Chapman and Chapman Super, Chapman argued that the newspaper notice was sufficient to warn Pierce not to deal with Savant.

Issues:

How would the court rule? Explain

Laws:

Conclusions:

Explanation / Answer

Laws: According to agency law, once the relationship between principal and the agent ends, the agent has no actual authority to bind the principal. But the apparent authority may continue till the third parties are notified about the termination of the agency. Constructive notice is sufficient for the third parties who have heard about the agency but have not yet dealt with the agent. If the principal knows that the agent has dealt with the agent, the principal is expected to notify that person directly.

Conclusions: In this case the agent, Anna Savant has frequently ordered products from the third party Global Electronic Components Corporation on behalf of the principal Super Electronic Supply Outlet before the agency termination. Hence the principal, Super had to inform the third party, Global regarding the termination of Anna Savant directly. But Super have only given notice through news paper regarding agency termination which is sufficient only if Anna Savant has not dealt with Global during her agency relationship. Hence the news paper notice is not sufficient to warn Global not to deal with Savant and Chapman’s arguments would not be considered by the court.

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