Which Statement Best Exemplifies the Liability of an Agent Who

question 53

Multiple Choice

Which statement best exemplifies the liability of an agent who acts without authority and contracts with a third party?

• A) The agent is liable to the principal for breach of warranty of authority.
• B) The third party is liable to the principal for breach of warranty of authority.
• C) The principal is liable to the agent for breach of agency by ratification.
• D) The agent is liable to the third party for breach of warranty of authority.

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Definitions:

Loyal Customers

Individuals who repeatedly purchase products or services from the same brand or company, often due to positive experiences or satisfaction.

Restructuring

The act of organizing something, such as a company or system, differently in order to make it operate more effectively.

Turnaround

The process of implementing significant changes in a company to address financial or operational issues and improve performance and profitability.

Multidomestic Strategy

A strategy that customizes products and advertising to best fit local needs.