Erin Indicates That She Is Acting as an Agent on Behalf

question 29

Multiple Choice

Erin indicates that she is acting as an agent on behalf of an unidentified client-Flight Services Inc.-when she enters into a contract with Go Airlines. Liability to Go for nonperformance of the contract may be imposed on

• A) none of the choices.
• B) Erin and Flight Services.
• C) Erin only.
• D) Flight Services only.

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Definitions:

Appreciation

An increase in the value of an asset over time, which can result from various factors including inflation, increased demand, or improvements to the asset.

Interest Rates

The percentage charged on borrowed money, or earned through investment, over a certain period of time.

Inflation Rate

The percentage rate at which the general level of prices for goods and services is rising, eroding purchasing power over time.

Demand

The willingness and ability of consumers to purchase goods or services at a given price level.