Bob Enlists the Help of His Son to Buy a New

question 33

Multiple Choice

Bob enlists the help of his son to buy a new car.On the way to test-drive several models,Bob tells his son,"I'm leaving this entire decision up to you except that you are not to spend over $20,000 on whatever car you decide on." At the Toyota dealer,Bob tells the salesperson,"I'm turning this whole decision over to my son,so deal with him even though it will be my car." Later,the son returns to the dealership and negotiates the purchase of a Toyota Camry for $21,500.What type of authority,if any,existed for the son to purchase this car?

• A) apparent
• B) implied
• C) actual
• D) dependent
• E) No authority existed here.

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Definitions:

Interest Rate

The amount charged by lenders to borrowers for the use of assets, usually expressed as a percentage of the principal, influencing borrowing and saving behaviors.

Usury Law

Legislation that sets a maximum interest rate that may be charged on loans to prevent predatory lending practices.

Shortage

A situation where the demand for a product or service exceeds the available supply, often leading to higher prices.

Loanable Funds

The money available for borrowing, which comes from savings in the economy and influences interest rates through supply and demand dynamics.