American Express Co. v. Lopez

This matter has been submitted to me upon an agreed statement of facts presenting a single issue of law. Does the chairman of the board of directors of a corporation, who is not the chief executive officer, have implied or apparent authority to pledge the credit of the corporation by virtue of obtaining the issuance to himself of an American Express credit card in the name of the corporation.

Broadly stated the rule is that general officer of a corporation has apparent authority to act in accordance with the normal practices of his corporation and of the business in which the corporation is…