A Principal Is Not Bound in Contract with the Third

question 95

Multiple Choice

A principal is not bound in contract with the third party with whom the agent dealt if the agent is

• A) within his express authority.
• B) within his implied authority.
• C) within his apparent authority.
• D) outside his authority but the principal ratified it.
• E) outside his actual and apparent authority.

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Definitions:

Nonexcludable

A characteristic of a public good where no one can be prevented from using it.

Nonrival

A characteristic of a good or service whereby one person's consumption does not diminish the utility or availability for others.

Free-Rider Problem

A situation where individuals consume a public good without contributing to its cost, potentially leading to underproduction or depletion of that good.

Air Pollution

The presence of harmful or excessive quantities of substances in the air, potentially harmful to human health and the environment.