In Which One of the Following Situations Will the Transaction

question 143

Multiple Choice

In which one of the following situations will the transaction not be binding on the principal?

• A) A salesman at a men's clothing store has heard a rumor that the store will be going out of business. The boss is out of the store when a customer who has heard the same thing comes in and offers to purchase all of the stock, display cases, and fixtures. The salesman accepts on behalf of the employer.
• B) A real estate salesperson, after disclosing the fact to his client, purchases the house the client is selling for himself.
• C) An employee of a flower shop is sent to the flower market every week to make purchases. This week he is told to buy only roses, but he can't pass up a tremendous deal on daisies and purchases a large quantity of them for the store.
• D) A chauffeur, going against specific instructions, purchases a new car for his employer. The employer has done nothing to lead the seller to believe the chauffeur has such authority, but is persuaded by the chauffeur to go for a drive before returning the car.
• E) A truck driver who is not an agent (no actual, implied, or apparent authority) enters into a contract on behalf of his employer to sell the cargo of ripe tomatoes after the truck breaks down and he can't get hold of the boss.

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Definitions:

Normal Curve

A type of continuous probability distribution for a real-valued random variable, characterized by its bell-shaped curve that is symmetrical around its mean.

Normal Curve

A bell-shaped curve that represents the distribution of a dataset where most of the observations cluster around the central peak and the probabilities for values further away from the mean taper off equally in both directions.

Binomial Probability

The probability of achieving a specific number of successes in a fixed number of independent trials, each with the same probability of success.

Binomial Distribution

A probability distribution that summarizes the likelihood that a value will take one of two independent states under a given number of observations.