Which of the Following Is True with Respect to the Agency

question 15

Multiple Choice

Which of the following is true with respect to the agency relationship?

• A) An agent acting gratuitously can never bind the principal.
• B) An agent's apparent authority may be implied from the position that the agent holds in the employer's organization.
• C) When a principal has specifically limited the authority of the agent, that agent can never bind the principal in a contract, even if the agent acts outside his authority.
• D) An agent's authority is limited to whatever authority the principal specifically gives the agent.
• E) Actual authority is the authority the principal has implied in conversations with a third party.

---

Definitions:

Democracy

A system of government by the whole population or all the eligible members of a state, typically through elected representatives.

Jeannette Rankin

The first woman to hold federal office in the United States, serving as a member of Congress from Montana and known for her advocacy for women's suffrage and peace.

Espionage Act

A United States federal law passed in 1917 that was aimed at prohibiting acts of espionage and interference with military operations or recruitment.

Vietnam War

A prolonged conflict from 1955 to 1975 between North Vietnam, supported by its communist allies, and South Vietnam, backed by the United States.