Ch 38 LSB Already Verified A+ - C-level executives may be _______ agents if they _______ employees within their departments.
️superior; hire and oversee - An agent's authority to bind the principal in a contract comes from _______ authority, which arises in
one of two ways. (Choose all the ...
- C-level executives may be _______ agents if they _______ employees within their departments.
✔️superior; hire and oversee
- An agent's authority to bind the principal in a contract comes from _______ authority, which arises in
one of two ways. (Choose all the correct answers)
✔️actual; express; implied
- If an agent acts outside of their authority, they may still bind the principal through _______ authority.
✔️apparent
- Even if an agent has acted without authorization, the principal can ratify transactions by: _______ or
_______. (Choose two correct answers)
✔️approving the transaction; retaining the benefits of the transaction
- An agent's liability to third parties in a contract depends on whether the agency relationship is:
_______. (Choose all the correct answers)
- A CEO is known as a(n) _______ agent, while the C-level executives are considered _______ agents.
✔️superior; subordinate
- In a fully disclosed agency relationship, who is liable to a third party? (Choose all the correct answers)
✔️the principal
- Authority is _______ when it is reasonably necessary to achieve the principal's objectives or is based
on custom or past dealings.
✔️implied
, - In a partially disclosed agency, who is liable to a third party under a contract? (Choose the correct
answer(s))
✔️both the principal and the agent
- When a third party depends on a statement or action of the principal that gives a false impression of
the agent's authority, this is called _______ authority.
✔️apparent
- In a(n) _________, a third party is entirely unaware of an agency relationship and thinks the agent is
acting independently when entering into a contract.
✔️undisclosed agency
- An agent can gain retroactive authority to bind a principal through _______.
✔️ratification
- A principal may face _______ liability for an agent's tort of negligence, even if the principal has done
nothing wrong.
✔️joint-and-several
- When a(n) _______ agent enters into a contract with a third party, the principal is bound because the
third party can legally enforce the contract against the principal. (Multiple choice question)
✔️authorized
- Under the doctrine of respondeat superior, employers are _______ liable for the negligent acts of
employee agents.
✔️vicariously
- A(n) ________ occurs when a third party knows the principal's identity and understands that the agent
is acting on behalf of the principal during the transaction.
✔️fully disclosed agency
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller CertifiedGrades. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.89. You're not tied to anything after your purchase.
