As a Result of Dealing with Barry, Zita Believes That

question 33

Multiple Choice

As a result of dealing with Barry, Zita believes that she has entered into a contract with Primus Inc. Zita claims that Barry, who is the president of Primus, acted as the corporation's agent. Which of the following statements is TRUE?

• A) The concept of ostensible authority means that it is not enough for Zita to prove that Barry appeared to have been authorized to act as the company's agent.
• B) Primus can avoid liability by demonstrating that its bylaws prohibited Barry from incurring liability on its behalf.
• C) The indoor management rule states that Primus cannot be held liable on the basis of Barry's actions unless, as a matter of the company's internal affairs, it had actually authorized him to act as its agent.
• D) Primus cannot deny that Barry had the authority that is usually held by the president of a corporation.
• E) Zita can only enforce the contract if she searched all the corporation's public records and found no restriction on Barry's authority.

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Definitions:

Federal Government

The national government of a federated state, which holds the authority to enact and enforce laws applicable to the entire country.

Educational Consequence

The positive or negative outcomes resulting from an individual's educational experiences or lack thereof.

Homelessness

The state of having no permanent residence, often resulting in living on the streets, in shelters, or in temporary accommodations.

Cognitive Delays

A slower development of mental processes compared to typical age-related expectations.