Is ethan liable to pay randy for the quinoa


Problem

Ethan owns and operates a health food store in Glenelg called NutriTucker. All of the food sold by NutriTucker is organic, gluten-free and vegan. NutriTucker's speciality item is the "organic vanilla quinoa smoothie." Recently, Ethan opened a second store in Unley. Ethan hired Marcia as a full-time store manager of the Glenelg store, so that Ethan could manage the new Unley store. As part of Marcia's terms of employment, she had day-to-day responsibility for running the store, including supervising casual staff and managing customer service and food preparation. Marcia also had the authority to check and accept deliveries. However, Ethan told her not to place orders with suppliers, or otherwise make any purchases on behalf of NutriTucker.

One-day, while working in the store, Marcia was approached by Randy who offered to supply NutriTucker with quinoa. The price Randy offered was much lower than the price NutriTucker was paying. Marcia, who was keen to impress Ethan, signed a 6-month supply agreement with Randy. Unfortunately, Ethan was not impressed at all. Randy's quinoa was not organic. Marcia had forgotten to request organic quinoa, which is why Randy's price was low.

Is Ethan liable to pay Randy for the quinoa (as per the supply agreement signed by Marcia)?

Note: for the purpose of this question, you do not need to consider any remedies that Ethan may have against Marcia. You are to consider Ethan's position with Randy only.

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Business Law and Ethics: Is ethan liable to pay randy for the quinoa
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