When the Principal Intentionally or Negligently Causes a Third Party

question 1

Multiple Choice

When the principal intentionally or negligently causes a third party to reasonably believe that an individual is acting as the principal's agent, and the third party relies on that belief, then

• A) no agency relationship exists.
• B) an express agency agreement is created.
• C) the purported agent assumes personal liabil- ity for his or her actions.
• D) an apparent agency may exist.

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Definitions:

Pumpkin Market

A market or segment of the economy focused on the production, distribution, and sale of pumpkins.

Consumer Surplus

The distinction in the total potential consumer payment for a good or service and their actual payment.

Surplus I

A situation where the quantity of a good or service supplied exceeds the quantity demanded, often leading to a price decrease.

Consumer Surplus

The disparity between consumers' theoretical expenditure on a good or service and their practical expenditure.