An Agent with No Express, Implied, or Apparent Authority to Do

question 13

Multiple Choice

An agent with no express, implied, or apparent authority to do so identified himself as an agent for his principal, and on behalf of his principal bought a computer. The principal refused to ratify the contract. On these facts, which of the following is true?

• A) The principal would have to pay for the computer because the agent was an agent for that principal.
• B) The agent could be sued by the seller of the computer for breach of his warranty of authority.
• C) By exceeding his authority, the agent has become the buyer of the computer himself.
• D) The seller of the computer could sue the agent for breach of contract for saying he was an agent.
• E) The seller could sue the principal for breach of warranty of authority.

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Definitions:

Overhead

A broader category of ongoing expenses not directly tied to specific products or services but essential for the business's day-to-day operations.

Machine-Hours

A measure of the amount of time machines are running in the production process, used to allocate manufacturing overhead costs.

Predetermined Overhead Rate

The rate used to allocate manufacturing overhead to individual units of production, based on estimated costs and activity levels.

Machine-Hours

A measure used in accounting to allocate manufacturing overhead costs to products based on the number of hours machines are used in the production process.