If a Third Party Is Led to Reasonably Believe That

question 36

Multiple Choice

If a third party is led to reasonably believe that an agent is acting within the scope of his/her authority,even though the agent is exceeding his/her authority,the principal may still be bound by the agent's actions.In this case,the agent has bound the principal by

• A)implied authority.
• B)apparent authority.
• C)incidental authority.
• D)express authority.

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Definitions:

Avoidance

A coping mechanism involving steering clear of stressful or anxiety-inducing situations or stimuli.

Fear

An emotion that occurs in response to a real or perceived current threat.

Apprehension

A feeling of anxiety or fear that something bad or unpleasant will happen.

Worry

A mental state involving feelings of anxiety and concern, often focused on negative or uncertain outcomes.